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Impact of Trade Liberalization on Income Inequality: Evidence From Turkey

Impact of Trade Liberalization on Income Inequality: Evidence From Turkey
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Author(s): Dilara Ayla (Recep Tayyip Erdoğan University, Turkey) and Çiğdem Karış (Trabzon University, Turkey)
Copyright: 2021
Pages: 15
Source title: Handbook of Research on Institutional, Economic, and Social Impacts of Globalization and Liberalization
Source Author(s)/Editor(s): Yilmaz Bayar (Bandirma Onyedi Eylul University, Turkey)
DOI: 10.4018/978-1-7998-4459-4.ch023

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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.

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