Economic Journal of Emerging Markets
Volume 11 Issue 1, 2019

On the nexus between exchange rate and income distribution in Turkey: ARDL bound testing analysis

Arif Eser Güzel (Department of Economics, Hatay Mustafa Kemal University, Hatay, Turkey)
Ünal Arslan (epartment of Economics, Hatay Mustafa Kemal University, Hatay, Turkey)



Article Info

Publish Date
30 Apr 2019

Abstract

If we talk about the importance of variables in economic development, income distribution is not the second to economic growth, especially in emerging countries. These emerging countries are generally characterized by the volatility of exchange rates, especially after most of the countries adopted floating exchange rates system. This paper investigates the impact of an increases in dollar value on income distribution using annual data in the period 1990-2016 for Turkey via an ARDL model and bound testing analysis. In constructing the empirical model, it also considers the impact of GDP per capita on the dependent variable. Findings/Originality: The paper finds that an increase in dollar value leads to a more unequal income distribution in Turkey. The dollar holds an important place in Turkey’s foreign trade. Therefore, the changes in the value of dollar results in significant welfare effects

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Journal Info

Abbrev

JEP

Publisher

Subject

Economics, Econometrics & Finance

Description

The Economic Journal of Emerging Markets (EJEM) is a peer-reviewed journal which provides a forum for scientific works pertaining to emerging market economies. Published every April and October, this journal welcomes original research papers on all aspects of economic development issues. The journal ...