How Does Digital Banking-Driven Financial Inclusion Affect Income Inequality in Türkiye?
This study empirically investigates the impact financial inclusion through digital banking channels has on income inequality in Türkiye using quarterly data for the 2011:Q1-2021:Q4 period. The study uses the Gini index to measure the dependent variable of income inequality and employs two variables...
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| Format: | Article |
| Language: | English |
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Istanbul University Press
2023-08-01
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| Series: | İktisat Politikası Araştırmaları Dergisi |
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| Online Access: | https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/17C086A6DAC74E908B2BE9F90E3E8F51 |
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| author | Ahmet Usta |
| author_facet | Ahmet Usta |
| author_sort | Ahmet Usta |
| collection | DOAJ |
| description | This study empirically investigates the impact financial inclusion through digital banking channels has on income inequality in Türkiye using quarterly data for the 2011:Q1-2021:Q4 period. The study uses the Gini index to measure the dependent variable of income inequality and employs two variables as proxies for digital banking. The first variable is the share of the investment volume in the total financial transaction volume made by retail customers through Internet banking. The second variable is a factor constructed based on the transaction volume per unitof main items under financial transactions. The study relies on time series approaches to test whether digital banking-driven financial inclusion has a significant impact on income inequality in Türkiye. As for the empirical evidence, the study employs the dynamic ordinary least squares method to obtain long-run coefficients, a vector autoregressive model to obtain short-run dynamics through impulse response functions with biascorrected bootstrap confidence intervals that account for the bias and skewness of the small sample, and a causality analysis. The findings show that digital financial inclusion has a widening impact on income inequality. Regarding the dynamic interactions, the Gini coefficient has been discovered to increase in response to digital banking innovations. The findings also reveal digital banking to have a forecasting ability on income inequality in Türkiye regarding the sample period. |
| format | Article |
| id | doaj-art-879feff5ee204363bfd5ed007bf5497c |
| institution | OA Journals |
| issn | 2148-3876 |
| language | English |
| publishDate | 2023-08-01 |
| publisher | Istanbul University Press |
| record_format | Article |
| series | İktisat Politikası Araştırmaları Dergisi |
| spelling | doaj-art-879feff5ee204363bfd5ed007bf5497c2025-08-20T02:15:38ZengIstanbul University Pressİktisat Politikası Araştırmaları Dergisi2148-38762023-08-0110250552310.26650/JEPR1227581123456How Does Digital Banking-Driven Financial Inclusion Affect Income Inequality in Türkiye?Ahmet Usta0https://orcid.org/0000-0001-9899-8072Gebze Teknik Üniversitesi, Kocaeli, TurkiyeThis study empirically investigates the impact financial inclusion through digital banking channels has on income inequality in Türkiye using quarterly data for the 2011:Q1-2021:Q4 period. The study uses the Gini index to measure the dependent variable of income inequality and employs two variables as proxies for digital banking. The first variable is the share of the investment volume in the total financial transaction volume made by retail customers through Internet banking. The second variable is a factor constructed based on the transaction volume per unitof main items under financial transactions. The study relies on time series approaches to test whether digital banking-driven financial inclusion has a significant impact on income inequality in Türkiye. As for the empirical evidence, the study employs the dynamic ordinary least squares method to obtain long-run coefficients, a vector autoregressive model to obtain short-run dynamics through impulse response functions with biascorrected bootstrap confidence intervals that account for the bias and skewness of the small sample, and a causality analysis. The findings show that digital financial inclusion has a widening impact on income inequality. Regarding the dynamic interactions, the Gini coefficient has been discovered to increase in response to digital banking innovations. The findings also reveal digital banking to have a forecasting ability on income inequality in Türkiye regarding the sample period.https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/17C086A6DAC74E908B2BE9F90E3E8F51digitalizationbankingfinancial inclusionincome inequalityeconomic development |
| spellingShingle | Ahmet Usta How Does Digital Banking-Driven Financial Inclusion Affect Income Inequality in Türkiye? İktisat Politikası Araştırmaları Dergisi digitalization banking financial inclusion income inequality economic development |
| title | How Does Digital Banking-Driven Financial Inclusion Affect Income Inequality in Türkiye? |
| title_full | How Does Digital Banking-Driven Financial Inclusion Affect Income Inequality in Türkiye? |
| title_fullStr | How Does Digital Banking-Driven Financial Inclusion Affect Income Inequality in Türkiye? |
| title_full_unstemmed | How Does Digital Banking-Driven Financial Inclusion Affect Income Inequality in Türkiye? |
| title_short | How Does Digital Banking-Driven Financial Inclusion Affect Income Inequality in Türkiye? |
| title_sort | how does digital banking driven financial inclusion affect income inequality in turkiye |
| topic | digitalization banking financial inclusion income inequality economic development |
| url | https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/17C086A6DAC74E908B2BE9F90E3E8F51 |
| work_keys_str_mv | AT ahmetusta howdoesdigitalbankingdrivenfinancialinclusionaffectincomeinequalityinturkiye |