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Consumption-Based Poverty in Türkiye between 2003 and 2022

Author

Listed:
  • Yıldız, Sümeyye

    (Ankara Yıldırım Beyazıt University)

Abstract

This paper seeks to evaluate consumption-based poverty in Türkiye between 2003 and 2022. Using representative household data from the Turkish Statistical Institute’s Household Budget Survey, this study calculates the Foster-Greer-Thorbecke (FGT) poverty indices based on relative poverty thresholds. The results show that poverty rates initially declined rapidly between 2003 and 2008, increased slightly between 2008 and 2012, and then continued to decline between 2012 and 2018. After 2018, poverty rates increased in Türkiye, almost reaching the 2007 level. The analysis also includes the decomposition of poverty changes into growth and redistribution components as well as subgroups. Growth in living standards acted as a poverty-reducing effect and was dominant between 2004-2008 and 2012-2018. The redistribution component was a poverty-increasing factor that was dominant after 2018. These periods coincide with the country’s overall economic performance. In particular, the highest decline in poverty rates occurred during high economic growth between 2003-2008. The surge in inflation post-2019 aligns with the increase in consumption poverty rates in 2022.

Suggested Citation

  • Yıldız, Sümeyye, 2025. "Consumption-Based Poverty in Türkiye between 2003 and 2022," Business and Economics Research Journal, Uludag University, Faculty of Economics and Administrative Sciences, vol. 16(1), pages 1-20, January.
    • Handle: RePEc:ris:buecrj:0676
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    More about this item

    Keywords

    Poverty; Consumption; Relative Poverty Line; Poverty Decomposition;
    All these keywords.

    JEL classification:

    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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