THE NEXUS BETWEEN INCOME INEQUALITY, INTERNATIONAL REMITTANCES AND ECONOMIC GROWTH IN TURKEY
THE NEXUS BETWEEN INCOME INEQUALITY, INTERNATIONAL REMITTANCES AND ECONOMIC GROWTH IN TURKEY

Summary/Abstract: In this study, the relationship between income inequality, remittances and economic growth in Turkey are analyzed using the annual data for 1977-2014 period. The ARDL method and Granger causality tests are used for this analysis. The empirical findings of the research suggest that the series are cointegrated and they move together in long-term. Also, income inequality and international remittances contribute to economic growth both in the long and short-term. The results of the Granger causality test show that there is a unidirectional causality running from economic growth to remittances and from remittances to income inequality.

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