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The Relationship Between Economic Growth, Inequality and Redistribution in Selected OECD Countries: Evidences From Panel Cointegration and Asymmetric Causality Analysis

Year 2022, Volume: 6 Issue: 3, 2647 - 2665, 30.09.2022
https://doi.org/10.29023/alanyaakademik.1071258

Abstract

In this study, the relationship between economic growth, inequality, and redistribution in selected OECD countries is examined by panel cointegration and Panel Hatemi-J asymmetric causality analysis methods for the period 1987-2018. With respect to the results of the structural break panel cointegration (Westerlund & Edgerton, 2008) test, it has been determined that the variables have co-movement in the long run. The cointegration estimators are analyzed using the Mean Group Dynamic OLS (DOLSMG) method. According to the findings, there is a negative relationship between economic growth and income inequality, and a positive relationship between economic growth and redistribution in those countries. As regards the asymmetric causality results, a negative shock in income inequality has caused a positive shock in economic growth, while a positive shock in redistribution causes a negative shock in economic growth.

References

  • AKALIN, G., ÖZBERK, R. İ., & ÇİFÇİ, İ. (2018). “Gelir Dağılımı ve Ekonomik Büyüme Arasındaki İlişki: ARDL Sınır Testi Yaklaşımı”. İktisadi ve İdari Bilimler Fakültesi Dergisi, 20(4), 60-73.
  • ALESINA, A., & PEROTTI, R. (1996). “Income distribution, political instability and investment”. European Economic Review, 40(6), 1203–28
  • ALESINA, A., & RODRIK, D. (1994). “Distributive Politics and Economic Growth”. Teh Quarterly Journal of Economics, 109(2), 465-490.
  • BARRO, R. J. (2000). “Inequality and growth in a panel of countries”. Journal of Economic Growth,Vol. 5(1), 5-32.
  • BARRO, R. J. (2008). “Inequality and Growth Revisited”. Asian Development Bank Working Papers, No: 11.
  • BENHABIB, J. ( 2003). “Teh Tradeoff Between Inequality and Growth”. Annals of Economics and Finance, Vol. 4, 329-345.
  • BERG, A., J.D. OSTRY, C., TSANGARİDES G. & YAKHSHILIKOV Y. (2018). “Redistribution, İnequality, and Growth:New Evidence.” Journal of Economic Growth, 258-303.
  • FELDSTEIN, M. (1998), “Income Inequality and Poverty”, NBER Working Paper, 6770.
  • FORBES, K. J. (2000) .“A Reassessment of teh Relationship Between Inequality and Growth.”. American economic review, Vol(90), 869-887.
  • FRANK, M.W. (2009). “Inequality and Growth in teh United States: Evidence from a New State‐Level Panel of Income Inequality Measures”. Economic Inquiry, Vol(47), 1465-7295.
  • GALOR, O., & MOAV, O. (2004). “From Physical to Human Capital Accumulation: Inequality and Teh Process of Development”. Teh Review of Economic Studies, 71(4), 1001-1026.
  • GÖKSU, S. & KILIÇ, R. (2020). “Gelir Dağılımındaki Eşitsizliğin Belirleyicilerine Yönelik Panel Nedensellik Analizi: OECD Ülkeleri Örneği”. Maliye Dergisi, 178:82-97.
  • GRANGER, C. W. J. (1969).“Investigating Causal Relations by Econometric Models and Cross-spectral Methods”. Econometrica, Vol: 37 (3), 424–438
  • HATEMI-J, A. (2012). “Asymmetric Causality Tests With An Application”. Empirical Economics, 43(1): 447-456.
  • HSIAO, C. (2005),“Why Panel Data?”, Institute of Economic Policy Research University of Southern California, Working Paper, 05.33, pp. 1-17.
  • KALDOR, N. (1957). “A Model of Economic Growth”. Teh Economic Journal, 67(268), 591–624.
  • NAZLIOĞLU, Ş. (2010). “Makro İktisat Politikalarının Tarım Sektörü Üzerindeki Etkisi: Gelişmiş ve Gelişmekte Olan Ülkeler İçin Bir Karşılaştırma”, Doktora Tezi. Erciyes Üniversitesi Sosyal Bilimler Enstitüsü, Kayseri.
  • OSTRY, J.D., BERG, A., & TSANGARİDES, C. G. (2014). “Redistribution, inequality, and growth”. Revista de Economía Institucional, 16(30), 53-81.
  • PAGANO, P. (2004) “An Empirical Investigation of teh Relationship between Inequality and Growth”. Bank of Italy, Economic Research Department.
  • PEÇE, M. A., CEYHAN, M. S., & AKPOLAT, A. (2016). “Türkiye’de Gelir Dağılımının Ekonomik Büyümeye Etkisi Üzerine Ekonometrik Bir Analiz”. International Journal of Cultural and Social Studies,Vol(2) , 2458-9381.
  • PEROTTI, R. (1996). "Growth, Income Distribution, and Democracy: What teh Data Say." Journal of Economic Growth 1.2: 149-187.
  • PERSSON, T. & TABELLINI, G. (1994). “Is Inequality Harmful for Growth?”. Teh American Economic Review, 84(3), 600-22.
  • PIKETTY, T. (2013). “Yirmi Birinci Yüzyılda Kapital” Kültür Yayınları, 3. Baskı, İstanbul
  • RUBIN, A. & SEGAL, D. (2015). “Teh TEMPEffects of Economic Growth on Income Inequality in teh US”. Journal of Macroeconomics”, (45), 258-273.
  • SOLOW, R. M. (1956). “A Contribution to Teh Theory of Economic Growth”. Teh Quarterly Journal of Economics, 70(1), 65-94.
  • SOLT, F. (2009). “Standardizing teh World Income Inequality Database”. Social Science Quarterly, Vol. 90(2), 231–42.
  • TINBERGEN, J. (1975). “Income Distribution: Analysis and Policies”. Amsterdam: North-Holland Publishing Company.
  • THEWISSEN, H. S. (2014). “Is it teh Income Distribution or Redistribution dat affects Growth?”. Department of Economics Research Memorandum, Leiden University.
  • WESTERLUND, J., & EDGERTON, D.,(2008) “A Simple Tests for Cointegration in Dependent Panels with Structural Break”, Oxford Bulletin of Economics and Statistics,70(5) pp. 665-704.

Seçilmiş OECD Ülkelerinde Ekonomik Büyüme, Eşitsizlik ve Yeniden Dağılım Arasındaki İlişki: Panel Eşbütünleşme ve Asimetrik Nedensellik Analizinden Elde Edilen Kanıtlar

Year 2022, Volume: 6 Issue: 3, 2647 - 2665, 30.09.2022
https://doi.org/10.29023/alanyaakademik.1071258

Abstract

Bu çalışmada, seçili OECD ülkelerinde ekonomik büyüme, eşitsizlik ve yeniden dağılım ilişkisi 1987-2018 dönemi için panel eşbütünleşme ve Panel Hatemi-J asimetrik nedensellik analiz yöntemleri ile incelenmektedir. Yapısal kırılmalı panel eşbütünleşme (Westerlund ve Edgerton, 2008) testi sonuçlarına göre değişkenlerin uzun dönemde birlikte hareket ettiği tespit edilmiştir. Eşbütünleşme tahmincileri Ortalama Grup Dinamik En Küçük Kareler (DOLSMG) yöntemi ile analiz edilmiştir. Elde edilen bulgulara göre söz konusu ülkelerde ekonomik büyüme ile gelir eşitsizliği arasında negatif bir ilişki, ekonomik büyüme ve yeniden dağılım arasında ise pozitif bir ilişki bulunmaktadır. Asimetrik nedensellik sonuçlarına göre ise gelir eşitsizliğinde meydana gelen negatif bir şok ekonomik büyümede pozitif bir şoka neden olurken, yeniden dağılımda meydana gelen pozitif bir şok ekonomik büyümede negatif bir şoka neden olmaktadır.

References

  • AKALIN, G., ÖZBERK, R. İ., & ÇİFÇİ, İ. (2018). “Gelir Dağılımı ve Ekonomik Büyüme Arasındaki İlişki: ARDL Sınır Testi Yaklaşımı”. İktisadi ve İdari Bilimler Fakültesi Dergisi, 20(4), 60-73.
  • ALESINA, A., & PEROTTI, R. (1996). “Income distribution, political instability and investment”. European Economic Review, 40(6), 1203–28
  • ALESINA, A., & RODRIK, D. (1994). “Distributive Politics and Economic Growth”. Teh Quarterly Journal of Economics, 109(2), 465-490.
  • BARRO, R. J. (2000). “Inequality and growth in a panel of countries”. Journal of Economic Growth,Vol. 5(1), 5-32.
  • BARRO, R. J. (2008). “Inequality and Growth Revisited”. Asian Development Bank Working Papers, No: 11.
  • BENHABIB, J. ( 2003). “Teh Tradeoff Between Inequality and Growth”. Annals of Economics and Finance, Vol. 4, 329-345.
  • BERG, A., J.D. OSTRY, C., TSANGARİDES G. & YAKHSHILIKOV Y. (2018). “Redistribution, İnequality, and Growth:New Evidence.” Journal of Economic Growth, 258-303.
  • FELDSTEIN, M. (1998), “Income Inequality and Poverty”, NBER Working Paper, 6770.
  • FORBES, K. J. (2000) .“A Reassessment of teh Relationship Between Inequality and Growth.”. American economic review, Vol(90), 869-887.
  • FRANK, M.W. (2009). “Inequality and Growth in teh United States: Evidence from a New State‐Level Panel of Income Inequality Measures”. Economic Inquiry, Vol(47), 1465-7295.
  • GALOR, O., & MOAV, O. (2004). “From Physical to Human Capital Accumulation: Inequality and Teh Process of Development”. Teh Review of Economic Studies, 71(4), 1001-1026.
  • GÖKSU, S. & KILIÇ, R. (2020). “Gelir Dağılımındaki Eşitsizliğin Belirleyicilerine Yönelik Panel Nedensellik Analizi: OECD Ülkeleri Örneği”. Maliye Dergisi, 178:82-97.
  • GRANGER, C. W. J. (1969).“Investigating Causal Relations by Econometric Models and Cross-spectral Methods”. Econometrica, Vol: 37 (3), 424–438
  • HATEMI-J, A. (2012). “Asymmetric Causality Tests With An Application”. Empirical Economics, 43(1): 447-456.
  • HSIAO, C. (2005),“Why Panel Data?”, Institute of Economic Policy Research University of Southern California, Working Paper, 05.33, pp. 1-17.
  • KALDOR, N. (1957). “A Model of Economic Growth”. Teh Economic Journal, 67(268), 591–624.
  • NAZLIOĞLU, Ş. (2010). “Makro İktisat Politikalarının Tarım Sektörü Üzerindeki Etkisi: Gelişmiş ve Gelişmekte Olan Ülkeler İçin Bir Karşılaştırma”, Doktora Tezi. Erciyes Üniversitesi Sosyal Bilimler Enstitüsü, Kayseri.
  • OSTRY, J.D., BERG, A., & TSANGARİDES, C. G. (2014). “Redistribution, inequality, and growth”. Revista de Economía Institucional, 16(30), 53-81.
  • PAGANO, P. (2004) “An Empirical Investigation of teh Relationship between Inequality and Growth”. Bank of Italy, Economic Research Department.
  • PEÇE, M. A., CEYHAN, M. S., & AKPOLAT, A. (2016). “Türkiye’de Gelir Dağılımının Ekonomik Büyümeye Etkisi Üzerine Ekonometrik Bir Analiz”. International Journal of Cultural and Social Studies,Vol(2) , 2458-9381.
  • PEROTTI, R. (1996). "Growth, Income Distribution, and Democracy: What teh Data Say." Journal of Economic Growth 1.2: 149-187.
  • PERSSON, T. & TABELLINI, G. (1994). “Is Inequality Harmful for Growth?”. Teh American Economic Review, 84(3), 600-22.
  • PIKETTY, T. (2013). “Yirmi Birinci Yüzyılda Kapital” Kültür Yayınları, 3. Baskı, İstanbul
  • RUBIN, A. & SEGAL, D. (2015). “Teh TEMPEffects of Economic Growth on Income Inequality in teh US”. Journal of Macroeconomics”, (45), 258-273.
  • SOLOW, R. M. (1956). “A Contribution to Teh Theory of Economic Growth”. Teh Quarterly Journal of Economics, 70(1), 65-94.
  • SOLT, F. (2009). “Standardizing teh World Income Inequality Database”. Social Science Quarterly, Vol. 90(2), 231–42.
  • TINBERGEN, J. (1975). “Income Distribution: Analysis and Policies”. Amsterdam: North-Holland Publishing Company.
  • THEWISSEN, H. S. (2014). “Is it teh Income Distribution or Redistribution dat affects Growth?”. Department of Economics Research Memorandum, Leiden University.
  • WESTERLUND, J., & EDGERTON, D.,(2008) “A Simple Tests for Cointegration in Dependent Panels with Structural Break”, Oxford Bulletin of Economics and Statistics,70(5) pp. 665-704.
There are 29 citations in total.

Details

Primary Language Turkish
Subjects Economics
Journal Section Makaleler
Authors

Hatice Çetin This is me 0000-0003-1620-9645

Tuğba Akın 0000-0002-1132-388X

Publication Date September 30, 2022
Acceptance Date June 20, 2022
Published in Issue Year 2022 Volume: 6 Issue: 3

Cite

APA Çetin, H., & Akın, T. (2022). Seçilmiş OECD Ülkelerinde Ekonomik Büyüme, Eşitsizlik ve Yeniden Dağılım Arasındaki İlişki: Panel Eşbütünleşme ve Asimetrik Nedensellik Analizinden Elde Edilen Kanıtlar. Alanya Akademik Bakış, 6(3), 2647-2665. https://doi.org/10.29023/alanyaakademik.1071258