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The Impact of Financial Liberalization and the Rise of Financial Rents on Income Inequality The Case of Turkey

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  • Yeldan, A. Erinc

Abstract

This study attempts to investigate and assess the impact of financial liberalization and the ongoing rise of financial rents on income distribution in the post-1980 Turkish economy. Our quantitative investigation of the dynamics of macroeconomic development over this period discloses an overall disassociation of financial institutions from the productive sphere to become the dominant segment of capital manipulating the aggregate domestic economy. Our findings underscore the fact that, given the poor vertical linkages among industrial sectors within the historical conditions of peripheral capitalism, the implementation of vigorous export-promotion polices and state-led price incentives created sporadic increases in productivity in the 1980s, yet failed to generate a sustained increase in economic growth and accumulation.

Suggested Citation

  • Yeldan, A. Erinc, 2000. "The Impact of Financial Liberalization and the Rise of Financial Rents on Income Inequality The Case of Turkey," WIDER Working Papers 295538, United Nations University, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:ags:widerw:295538
    DOI: 10.22004/ag.econ.295538
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    Cited by:

    1. Meschi, Elena & Taymaz, Erol & Vivarelli, Marco, 2011. "Trade, technology and skills: Evidence from Turkish microdata," Labour Economics, Elsevier, vol. 18(S1), pages 60-70.
    2. Mehmet Akif Destek & Avik Sinha & Samuel Asumadu Sarkodie, 2020. "The relationship between financial development and income inequality in Turkey," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-14, December.
    3. Matthew Abrena & Gerald Epstein & Dorothy Power, 2003. "Trends In The Rentier Income Share In OECD Countries, 1960-2000," Working Papers wp58a, Political Economy Research Institute, University of Massachusetts at Amherst.
    4. Öner Günçavdi & Suat KüçükçifçI & Andrew McKay, 2003. "Adjustment, Stabilisation and the Analysis of the Employment Structure in Turkey: An Input- Output Approach," Economic Change and Restructuring, Springer, vol. 36(4), pages 315-331, December.
    5. Oner Guncavdi & Suat Kucukciftci, 2011. "Openness to trade and structural changes in the sources of economic growth and labour demand in Turkey," EconoQuantum, Revista de Economia y Finanzas, Universidad de Guadalajara, Centro Universitario de Ciencias Economico Administrativas, Departamento de Metodos Cuantitativos y Maestria en Economia., vol. 8(1), pages 7-34, Julio-Dic.
    6. Dorothy Power & Gerald Epstein, 2003. "Rentier Incomes and Financial Crises: An Empirical Examination of Trends and Cycles in Some OECD Countries," Working Papers wp57, Political Economy Research Institute, University of Massachusetts at Amherst.
    7. Betul Mutlugun & Ahmet Ä°ncekara, 2023. "Estimation of the Distribution and Demand Dynamics in Turkey: Structural Vector Autoregression Approach to a Post-Keynesian Model," Istanbul Journal of Economics-Istanbul Iktisat Dergisi, Istanbul University, Faculty of Economics, vol. 73(73-1), pages 1-54, June.
    8. Adem Y. Elveren & James K. Galbraith, 2009. "Pay Inequality in Turkey in the Neo-Liberal Era, 1980-2001," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 6(2), pages 177-206, December.
    9. Tonæi Svilokos & Ivan Burin, 2017. "Financialization and its impact on processof deindustrialization in the EU," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 35(2), pages 583-610.
    10. Utku Balaban, 2011. "The Enclosure of Urban Space and Consolidation of the Capitalist Land Regime in Turkish Cities," Urban Studies, Urban Studies Journal Limited, vol. 48(10), pages 2162-2179, August.
    11. Saniye Dedeoğlu, 2010. "Visible Hands - Invisible Women: Garment Production in Turkey," Feminist Economics, Taylor & Francis Journals, vol. 16(4), pages 1-32.
    12. Guncavdi, Oner & Kucukcifci, Suat, 2008. "Openness to Trade and Structural Changes in the Sources of Economic Growth and Labour Demand in Turkey," MPRA Paper 9624, University Library of Munich, Germany.

    More about this item

    Keywords

    International Development;

    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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