Distributional relations and assesment of economic policies aimed at regulations income distrubution (Case study of Turkey)

ABSTRACT The purpose of this thesis -with the title Distributional Relations and Assessment of Economic Policies Aimed at Regulations income Distribution,(Case Study of Turkey) is to analyse the effects of economic policies pursued during 1963-1996 on functional, sectorel, regional and personel income distribution. The thesis is composed of three sections. Section 1, concentrates mainly on the analysis of consepts and theories with respect to income distribution. As such; Physioeratic, Classical, Neo-classical, Keynesian and synthesis models of distributional theories are examined under the assumptions of open economy, closed economy and technological progress, recpectively. -ft- is concluded that, various theories and evaluations on the subject are to some extent influenced by ideologies and that a coherent theory that may explain all aspects of distribution has not been developed yet. Section 2 examines various economic policies on distributional issues under the heading of theory; economic process, economic structure, economic system and economic order. The impact of such policies on the sectorel, functional and regional income distortion are evaluated. In this section distributional policies are addressed in a somewhat different and broader context than the mainstream literature which has comfined its analysis within the narrow context of economic process policies. Sections three, based on the above evaluations, indroduces a case study of Turkey with respect to distributional issues. More specifically the distributional impact of economic policies pursued in Turkey during 1963-1996 period-undcr the two subperiods import substitutions growth( 1963-79) and export-led growth( 1980- 1996)- are examined and assessed. Such impact are analysed with the aid of econometric model where ever reliable and computable data is available. In the light of these analysis, it is conclued that there prevails severe inequality in Turkey in all aspects of functional, sectorel, regional and personel income distrubition, and that policies implemented since 1980 have had diverse and dominating influence on the worsening of inequality in Turkey. Finally it is argued that the extent of distributional inequality in Turkey has reached such a high level that it threatens social integrity and peace. Therefore we conclude, distributional issues should gain priority over other issues in the formation and implementation of economic policies.