PurposeThis study aims to determine whether there is an effect of internal and public debt on income inequality in Kenya for the period 1970–2018.Design/methodology/approachThe relationship is examined by using the Autoregressive Distributed Lag (ARDL) model by Pesaran et al. (2001) and Toda Yamamoto causality by Toda and Yamamoto (1995).FindingsOur findings suggest that both internal and public debt harm inequality in Kenya in the long term. Furthermore, a one-way causality from internal debt to income inequality is also obtained while no causality relationship is found to exist between public debt and income inequality. Based on these findings, the study recommends that to reduce income inequality levels in Kenya, other methods of financing other than debt financing should be preferred because debt financing is not pro-poor.Originality/valueThis study is unique based on the fact that no previous paper has analysed the debt and inequality relationship in Kenya. To the best of our knowledge, this will be the first study to analyse the applicability of redistribution effect of debt in Kenya. The study is also different in that it provides separate analysis for public debt and internal debt on their effects on income inequality.

This study aims to determine whether the effect of income inequality on economic growth is realised through transmission channels theoretically expressed. This relationship is examined for 143 countries and the periods between 1980 and 2017 through positive and negative channels. These countries are divided into two groups by considering their income levels and they are analysed with panel data econometric techniques. Although the findings provide evidence that high inequality adversely affects economic growth, it can be stated that this inference cannot be generalized when countries' income levels are taken into account. Countries with higher inequality tend to have higher fertility rates and less innovative activity. The financial market imperfections in developing countries adversely affect human capital investments. On the other hand, high inequality tends to increase saving propensity in developed countries and provides evidence for the positive channel. The findings highlight the complexity of the impact of income inequality on economic growth. Therefore, indirect impact needs to be scrutinized and policy recommendations need to be carefully designed.

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This study aims to determine effects of economic growth on income inequality by classifiying countries in terms of their level of development. The validity of Kuznets's inverted-U shaped hypothesis is tested for four different panels that is divided as low and low-middle income countries, upper-middle income countries, high income countries and all countries. This paper examines that the relationship between economic growth and income inequality by using data for the period of 1995-2011 and 94 countries. The evidences support Kuznets's hypothesis. Income inequality decreases with economic growth in high income countries, while it increases in low and low-middle income and upper-middle income countries. The results indicate that economic growth should be supported by the policies reducing income inequality.

Bu çalışmanın amacı Türkiye'de bütçe açığı, kamu iç borcu ve gelir eşitsizliği arasındaki ilişkileri tespit etmektir. Bu amaç doğrultusunda değişkenler arasındaki ilişkiler 1987-2018 dönemi temel alınarak Vektör Otoregresyon (VAR) yöntemi kullanılarak incelenmektedir. Ampirik sonuçlar, Türkiye'de hem bütçe açığından hem de bütçe açığının finansman yöntemi olarak kullanılan kamu iç borçlarından gelir eşitsizliğine doğru tek yönlü nedensellik olduğuna dair kanıt sunmaktadır. Benzer şekilde bu ilişki VAR modelinden elde edilen etki tepki fonksiyonlarında da görülmektedir. Bütçe açığı ve kamu iç borç stokundaki bir şokun gelir eşitsizliği üzerinde pozitif etkileri olduğu söylenebilir. Bunun yanı sıra teorik beklentilerle uyumlu olacak şekilde bütçe açığının da kamu iç borcu stoku üzerinde uzun dönemli pozitif etkisinin varlığına yönelik kanıtlara ulaşılmaktadır. Elde edilen bu sonuçlar ise kamu iç borç stokundaki artışın gelir eşitsizliğini arttırıcı etkiye sahip olduğunu ileri süren teorik görüşleri Türkiye için destekler niteliktedir.