The Relationship between Economic Growth and Income Distribution in Turkey and the Turkish Republics of Central Asia and Caucasia: Dynamic Panel Data Analysis with Structural Breaks

Mercan M., Azer O. A.

Eurasian Economic Review, vol.3, no.2, pp.165-182, 2013 (Scopus) identifier

  • Publication Type: Article / Article
  • Volume: 3 Issue: 2
  • Publication Date: 2013
  • Doi Number: 10.14208/eer.2013.03.02.004
  • Journal Name: Eurasian Economic Review
  • Journal Indexes: Scopus
  • Page Numbers: pp.165-182
  • Keywords: Gini Coefficient, Income Distribution, Panel Data Analysis with Structural Breaks, Transition Countries
  • Hakkari University Affiliated: Yes


In this study, the effect of economic growth on income distribution was tested using data from Central Asian and Caucasian countries’ economies (Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan) and Turkish economy over the period of 1995 to 2009. New generation panel data methods, which consider cross-section dependence and structural breaks among countries, were used for the analysis. The results indicate that there exists co-integration among the series. We found that that the economic growth had a negative effect on the income distributions across the countries. In particular, the results show that the economic growth improved the income distribution in Turkey and Azerbaijan.