Finansal Gelişmenin Gelir Eşitsizliği ve Yoksulluk Üzerine Etkisi: Panel Veri Analizi
The Impact of Financial Development on Income Inequality and Poverty: A Panel Data Analysis

Summary/Abstract: This study examines the effects of financial development on income inequality and poverty using a panel dataset of 116 developed and developing countries covering the period 1980–2021. It further investigates whether these effects vary according to countries’ structural characteristics, including education level, per capita income, inflation, public expenditures, trade openness, population dynamics, and infrastructure indicators. Methodologically, the analysis employs the Driscoll–Kraay standard errors estimator to address cross-sectional dependence and autocorrelation in panel data. Financial development is proxied by the IMF Financial Development Index, and interaction terms are incorporated to evaluate how structural factors such as education, income level, infrastructure, and globalization shape the impact of financial development. The findings indicate that the effects of financial development are heterogeneous across countries. While financial development contributes to poverty reduction, particularly by improving access for low-income groups, it may increase income inequality under conditions of higher education, stronger infrastructure, and greater globalization. In conclusion, the study suggests that policies should be designed in a flexible and inclusive manner, taking into account country-specific dynamics, in order to harness the positive effects of financial development in reducing income inequality and poverty.

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