The Relationship Between Transfer Expenditures and Income Distribution in Turkey
Chapter from the book:
Gözen,
S.
&
Sağdıç,
E.
N.
(eds.)
2024.
Selected Public Finance Issues in Türkiye.
Synopsis
Transfer expenditures, one of the fiscal policy tools used to reduce income inequality and poverty, have increased their share in the budget over the years. In this study, Granger causality analysis was applied to assess the impact of transfers to households and social benefits on income distribution. The findings indicate a unidirectional causality from transfer expenditures to the Gini coefficient. In this context, strategically targeted transfer expenditures have the potential to promote socio-economic balance and reduce income inequality.