THE EFFECT OF FOREIGN AID ON INCOME INEQUALITY: THE CASE OF TURKEY Cover Image

DIŞ YARDIMLARIN GELİR EŞİTSİZLİĞİNE ETKİSİ: TÜRKİYE ÖRNEĞİ
THE EFFECT OF FOREIGN AID ON INCOME INEQUALITY: THE CASE OF TURKEY

Author(s): Ayşe Arı
Subject(s): National Economy, Economic history, Economic development, Transformation Period (1990 - 2010), Present Times (2010 - today), Socio-Economic Research
Published by: Kafkas Üniversitesi Sağlık, Kültür ve Spor Daire Başkanlığı Dijital Baskı Merkezi
Keywords: Foreign aid; income inequality; Turkey;

Summary/Abstract: Foreign aid is provided for underdeveloped and developing countries to reduce poverty and ensure economic development. However, the effectiveness of foreign aid is controversial. The aim of this study is to investigate the effect of foreign aid on income inequality. For this purpose, the Turkish economy is analyzed over the period 1989-2019 by employing ARDL method. According to the results obtained, the increase in foreign aid deepens income inequality. It is also determined that openness positively affects inequality. Additionally, it has been observed that the increase in the real income level induces income distribution to be more equal. In this case, we can say that foreign aid inflow to Turkey is not used for productive activities.

  • Issue Year: 13/2022
  • Issue No: 25
  • Page Range: 329-343
  • Page Count: 15
  • Language: Turkish