Econometric analysis of the relationship between economic growth and income distribution

The aim of this study is to estimate the relationship between economic growth and income distribution by Granger causality analysis. In the first part of the study, the subject and method of the study are explained. In the second part of the study of economic growth, income distribution and related concepts in the world and in Turkey it is explained the relationship of economic growth and income distribution. In the third part of the study, a summary of the literature is given. In the fourth part of the study, econometric method and theoretical explanations are given, in the fifth part, econometric application is given. The relationship between economic growth and income distribution was analyzed using annual data for the period 1979-2015 for some selected countries for upper income group, upper middle income group and lower middle income group. According to the results of Granger causality analysis, one-way causality among variables was found in some countries within each country group. According to the results, one-way Granger causality was found among the variables for some countries and a positive correlation was found among the variables for some countries according to the correlation matrices of the countries.