Abstract This paper is the first to examine the linear and nonlinear effect of financial development on income inequality in Turkey over the period of 1980-2013. Financial development is represented by disaggregated and aggregated indicators. In this way, the effects of various financial indicators on income inequality are explained. Maki (2012) structural breaks co-integration test, and Stock and Watson (1993) dynamic ordinary least squares (DOLS) methods are followed for empirical analysis. Finally, the fully modified least squares (FM-OLS) regression analysis method developed by Philips and Hansen (1990) is used for robustness check. The estimation results of the linear relationship indicate that financial development is a mitigating effect on income inequality. These results support the inequality-narrowing hypothesis. The non-linear relationship results show that financial development first increases income inequality but after financial development reaches a certain level, this effect is reversed and financial development reduces income inequality. These results support the Greenwood-Jovanovic hypothesis. All the results strongly suggest that financial development is a mitigating or improving effect on income inequality over the long-run.

中文翻译：

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金融发展对土耳其收入不平等的影响：Greenwood-Jovanovic假设的估计

摘要本文是第一个研究1980-2013年间土耳其金融发展对收入不平等的线性和非线性影响的论文。金融发展以分类和汇总指标为代表。通过这种方式，解释了各种财务指标对收入不平等的影响。Maki（2012）进行结构折断协整检验，并采用Stock和Watson（1993）的动态普通最小二乘法（DOLS）进行实证分析。最后，由Philips和Hansen（1990）开发的完全修改的最小二乘（FM-OLS）回归分析方法用于鲁棒性检查。线性关系的估计结果表明，金融发展对收入不平等具有缓解作用。这些结果支持不平等缩小的假设。非线性关系结果表明，金融发展首先加剧了收入不平等，但在金融发展达到一定水平后，这种影响被逆转，金融发展减少了收入不平等。这些结果支持Greenwood-Jovanovic假设。所有结果都强烈表明，从长远来看，金融发展可以减轻或改善收入不平等的影响。