Impact of Trade Liberalizationon Income Inequality:Evidence From Turkey


Ayla D., Karış Ç.

in: Handbook of Research on Institutional, Economic, and Social Impacts of Globalization and Liberalization, Yilmaz Bayar, Editor, IGI Global, Pennsylvania, pp.412-426, 2021

  • Publication Type: Book Chapter / Chapter Research Book
  • Publication Date: 2021
  • Publisher: IGI Global
  • City: Pennsylvania
  • Page Numbers: pp.412-426
  • Editors: Yilmaz Bayar, Editor
  • Recep Tayyip Erdoğan University Affiliated: Yes

Abstract

This study consists of trade openness in Turkey within the scope of the 1985-2018 period and examination

of the cointegration and causality relationship between the Gini coefficient and per capita income levels.

In this regard, per capita income, which is one of the economic welfare indicators, has been used as the

control variable. ARDL boundary test models used in the analysis have been examined by forming two

models in which both variables have been evaluated as dependent variables. Therefore, the short- and

long-term effects of both variables on each other have been determined. The cointegration relationship

tests performed within the scope of the ARDL boundary test in the first stage of the analysis showed that

these variables act together in the long run. However, it has been determined that the trade openness

ratio negatively affected income justice in the short and long term.