The Linkage between Economic Development and Income Distribution in MIST Countries: Panel ARDL Analysis
Economic development and income distribution are central issues in economics, with their relationship being critical for sustainable development. Imbalances in income distribution can slow economic growth and reduce societal welfare. Thus, development policies should prioritize not just growth but a...
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Ekonomi ve Finansal Araştırmalar Derneği
2024-12-01
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| Series: | Ekonomi, Politika & Finans Araştırmaları Dergisi |
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| Online Access: | https://dergipark.org.tr/tr/download/article-file/4392767 |
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| author | Mustafa Batuhan Tufaner İlyas Sözen Ayşenur Tarakcıoğlu Altınay |
| author_facet | Mustafa Batuhan Tufaner İlyas Sözen Ayşenur Tarakcıoğlu Altınay |
| author_sort | Mustafa Batuhan Tufaner |
| collection | DOAJ |
| description | Economic development and income distribution are central issues in economics, with their relationship being critical for sustainable development. Imbalances in income distribution can slow economic growth and reduce societal welfare. Thus, development policies should prioritize not just growth but also equitable income distribution. A balanced income distribution enhances social acceptance and ensures the sustainability of development. This study examines the relationship between economic development and income distribution in MIST countries (Mexico, Indonesia, South Korea, and Turkey) from 1990 to 2022, as classified by economist Jim O’Neill. Using a panel ARDL model, the findings show that economic development reduces income inequality. However, industrialization, a marker of technological progress, tends to increase inequality. These insights have significant policy implications. To mitigate income inequality, MIST countries should emphasize the three pillars of economic development: education, health, and growth. Policymakers must reassess industrialization strategies, promoting renewable energy while addressing inequality. Subsidies to non-renewable sectors and improved vocational training for unskilled labor can reduce the dual economic structure created by technological advancements. By implementing vocational programs and orientation initiatives, governments can limit the adverse effects of industrialization on unskilled workers, ensuring more equitable growth. |
| format | Article |
| id | doaj-art-4a6c8e61eed94e3fba0e68d7fae5b81c |
| institution | Kabale University |
| issn | 2587-151X |
| language | English |
| publishDate | 2024-12-01 |
| publisher | Ekonomi ve Finansal Araştırmalar Derneği |
| record_format | Article |
| series | Ekonomi, Politika & Finans Araştırmaları Dergisi |
| spelling | doaj-art-4a6c8e61eed94e3fba0e68d7fae5b81c2025-01-03T21:46:57ZengEkonomi ve Finansal Araştırmalar DerneğiEkonomi, Politika & Finans Araştırmaları Dergisi2587-151X2024-12-019472974210.30784/epfad.1591103957The Linkage between Economic Development and Income Distribution in MIST Countries: Panel ARDL AnalysisMustafa Batuhan Tufaner0https://orcid.org/0000-0003-0415-4368İlyas Sözen1https://orcid.org/0000-0002-6503-4696Ayşenur Tarakcıoğlu Altınay2https://orcid.org/0000-0001-6963-2346BEYKENT ÜNİVERSİTESİDOKUZ EYLÜL ÜNİVERSİTESİUŞAK ÜNİVERSİTESİEconomic development and income distribution are central issues in economics, with their relationship being critical for sustainable development. Imbalances in income distribution can slow economic growth and reduce societal welfare. Thus, development policies should prioritize not just growth but also equitable income distribution. A balanced income distribution enhances social acceptance and ensures the sustainability of development. This study examines the relationship between economic development and income distribution in MIST countries (Mexico, Indonesia, South Korea, and Turkey) from 1990 to 2022, as classified by economist Jim O’Neill. Using a panel ARDL model, the findings show that economic development reduces income inequality. However, industrialization, a marker of technological progress, tends to increase inequality. These insights have significant policy implications. To mitigate income inequality, MIST countries should emphasize the three pillars of economic development: education, health, and growth. Policymakers must reassess industrialization strategies, promoting renewable energy while addressing inequality. Subsidies to non-renewable sectors and improved vocational training for unskilled labor can reduce the dual economic structure created by technological advancements. By implementing vocational programs and orientation initiatives, governments can limit the adverse effects of industrialization on unskilled workers, ensuring more equitable growth.https://dergipark.org.tr/tr/download/article-file/4392767economic developmentincome distributionpanel ardl modelekonomik kalkınmagelir dağılımıpanel ardl model |
| spellingShingle | Mustafa Batuhan Tufaner İlyas Sözen Ayşenur Tarakcıoğlu Altınay The Linkage between Economic Development and Income Distribution in MIST Countries: Panel ARDL Analysis Ekonomi, Politika & Finans Araştırmaları Dergisi economic development income distribution panel ardl model ekonomik kalkınma gelir dağılımı panel ardl model |
| title | The Linkage between Economic Development and Income Distribution in MIST Countries: Panel ARDL Analysis |
| title_full | The Linkage between Economic Development and Income Distribution in MIST Countries: Panel ARDL Analysis |
| title_fullStr | The Linkage between Economic Development and Income Distribution in MIST Countries: Panel ARDL Analysis |
| title_full_unstemmed | The Linkage between Economic Development and Income Distribution in MIST Countries: Panel ARDL Analysis |
| title_short | The Linkage between Economic Development and Income Distribution in MIST Countries: Panel ARDL Analysis |
| title_sort | linkage between economic development and income distribution in mist countries panel ardl analysis |
| topic | economic development income distribution panel ardl model ekonomik kalkınma gelir dağılımı panel ardl model |
| url | https://dergipark.org.tr/tr/download/article-file/4392767 |
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