Finansal gelişmenin gelir eşitsizliği üzerindeki etkisi: Türkiye örneği

This thesis aims to examine the impact of financial development on income inequality by using data from 26 subregions of Turkey. The financial development indicator is the ratio of cash credits to GDP. Income inequality indicators are the S80/S20 ratio, Gini coefficient, and poverty level. The impact of financial development indicator on income inequality indicators is analyzed over the time period 2014-2017 by using pooled OLS estimation method. To test the robustness of the main empirical results, control variables are used. The control variables comprise of education level, inflation rate, unemployment rate, and population growth. Education level is accepted as a social capital indicator. The inflation rate and unemployment rate are macroeconomic indicators. According to the empirical results, financial development does not improve income inequality, contrary deteriorates it. However, control variables that are included in the model determine the impact of financial development. The results from the econometric analysis indicate that the structure of social capital and macroeconomic condition of Turkey are insufficient to support the financial development. Financial development, which cannot be established with a good social capital infrastructure and sound macroeconomic conditions distorts income distribution on the contrary to expectations of most of the literature. Keywords: Financial Development, Income Inequality, Poverty