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23

Ekonomik Yaklasim. 2007; 18(65): 25-58


INTER-REGİONAL DIFFERENCIES IN TERMS OF DEVELOPMENT AND INCOME INEQUALITY IN TURKEY: IS KUZNETS INVERSE-U CURVE VALID?

İbrahim TOKATLIOĞLU, Murat ATAN.

Abstract
Kuznets (1955) pointed out that in the beginning of development process, when development improved, income inequality increased. But in the middle of development process, income inequality will decrease concurrently with development. Kuznets Curve has not been accepted drastically. It is still unproven. This study investigates the relation between income inequality and economic growth, namely, the Kuznets inverse-U curve, in Turkey. Because of the absence of reliable time series data for Turkey, we postulate that data of income inequality and GDP per capita on about regions that are defined by nuts 2 impersonates the process of Turkey's development. Estimation results gathered from cross-section analysis show that there is no evidence of a significant inverse Kuznets curve for Turkey in this study.

Key words: Kuznets Curve, Income Inequality, Economic Growth, Poverty, Regional Development, Turkey



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