The impact of technological development on income distribution in the Turkish economy: A time series analysis

Technology has been a topic of interest throughout human history. The place of technology in economic participation has been researched and analyzed by societies. Thanks to the changes and innovations it provides, it affects many factors within the system. In this study, the impact of technological development on income distribution is investigated. It is a point of interest how the increase in productivity created by technology in labor and capital factors leads to a redistribution among these segments. The aim of this study is to measure the impact of technological development on the factorial factors of labor and capital through a time series Granger causality test. Data on the share of labor in national income, the share of capital in national income, the share of the ratio of capital and labor in national income, R&D, patent rates and growth rates in national income between 1998 and 2021 are used. The stationarity of the variables is analyzed with the unit root test and they are stationary at the first difference level. One-period lag level was determined and Johansen cointegration test was performed. Cointegration between the variables was ensured and Granger causality test was applied at the last stage and no causality link was found between all variables.