AN ANALYSIS OF THE IMPACTS OF FINANCIAL INCLUSION ON INCOME INEQUALITY IN THE FRAGILE FIVE COUNTRIES

Emrah DOĞAN; Cengizhan GÜLER

doi:https://doi.org/10.14780/muiibd.960047

Article Details

AN ANALYSIS OF THE IMPACTS OF FINANCIAL INCLUSION ON INCOME INEQUALITY IN THE FRAGILE FIVE COUNTRIES

Authors:

Emrah DOĞAN | Cengizhan GÜLER

Publisher:

Marmara University

Main Topics:

Economics and Finance

Journal:

Marmara University Journal of Economic and Administrative Sciences 2021 Vol.43 Issue 1, pp.1-20

Document Type:

Article

Publication Date:

6/2021

Document Language:

English

Document ID (Org No.):

2000535407

Frequency:

Bi-Annual

pISSN:

2587-2672

DOI:

https://doi.org/10.14780/muiibd.960047

Abstract:

 

The equitable distribution of income is a very important problem in the economies of the past and present. In
this sense, this study aims to investigate the relationship between financial inclusion and income inequality
in the fragile five countries (Colombia, Mexico, South Africa, Turkey, Indonesia). For this purpose, a
comprehensive index of financial inclusion was constructed for the Fragile Five Countries. A panel data
set from 2005 to 2008 was used for the study. The econometric methods used are Principal Component
Analysis (PCA), Parks-Kmenta Estimator and Dumitrescu and Hurlin Panel Granger Causality test. The
results show that there is a negative relationship between financial inclusion and income inequality. There
is a statistically significant “inverse-U” shaped relationship between GDP per capita and income inequality
in the fragile five countries. However, there is a statistically significant and negative relationship between
internet usage and income inequality. In this regard, the findings of this study imply that fair growth and
financial inclusion together help to reduce income inequality.

Article Details

AN ANALYSIS OF THE IMPACTS OF FINANCIAL INCLUSION ON INCOME INEQUALITY IN THE FRAGILE FIVE COUNTRIES

Authors: Emrah DOĞAN | Cengizhan GÜLER

Publisher: Marmara University

Main Topics: Economics and Finance

Journal: Marmara University Journal of Economic and Administrative Sciences 2021 Vol.43 Issue 1, pp.1-20

Document Type: Article

Publication Date: 6/2021

Document Language: English

Document ID (Org No.): 2000535407

Frequency: Bi-Annual

pISSN: 2587-2672

DOI: https://doi.org/10.14780/muiibd.960047

Issues

Authors:

Emrah DOĞAN | Cengizhan GÜLER

Publisher:

Marmara University

Main Topics:

Economics and Finance

Journal:

Marmara University Journal of Economic and Administrative Sciences 2021 Vol.43 Issue 1, pp.1-20

Document Type:

Article

Publication Date:

6/2021

Document Language:

English

Document ID (Org No.):

2000535407

Frequency:

Bi-Annual

pISSN:

2587-2672

DOI:

https://doi.org/10.14780/muiibd.960047