International Congress on Eurasian Economies

International Conference on Eurasian Economies

12-14 October 2011 – Bishkek, KYRGYZSTAN

Paper detail

Paper ID : 291
Status : Paper published
Language : Turkish
Topic : Regional Economics
Presenter: Prof. Dr. Ayşen Hiç Gencer
Session : 6C Orta Asya Ekonomileri III

The Relationship between Economic Growth and Income Distribution: The Case of Transition Economies
Ekonomik Büyüme ve Gelir Dağılımı İlişkileri: Geçiş Ekonomileri Deneyimi

Abstract

In the literature on economic growth, Kuznets curve shows the relationship between growth and income distribution. According to the Kuznets curve, as per capita income rises, income distribution would first become more unequal, and then less unequal. This means that, in a less developed country poverty is shared; in a developing country the difference between the rich and the poor becomes wider; and in a developed country richness is shared. In economies in transition, from socialism to market economy, however, income distribution should be less unequal because of the socialist system. But during the transition, there occurred recessions that led to falls in income. Therefore, during the transition process, as income decreased, income distribution became more unequal. In this study, the relationship between per capita income and income distribution on the transition economies are investigated by means of panel data analysis. The results obtained are then compared with the Kuznets curve.

JEL codes: C31, D63, O15

Özdemir, Dilek, Emsen, Ömer Selçuk, Gencer, Ayşen Hiç, Kılıç, Cemil Hakan (2011). "The Relationship between Economic Growth and Income Distribution: The Case of Transition Economies" in Proceedings of International Conference of Eurasian Economies 2011, pp.440-447, Bishkek, KYRGYZSTAN.

DOI: https://doi.org/10.36880/C02.00291

Full paper in PDF format.

Session 6C: Orta Asya Ekonomileri III

Istanbul Beykent University Kyrgyz-Turkish Manas University Promotion Fund of the Turkish Prime Ministry Turkish Central Bank