IS THE PRICE OF ECONOMIC GROWTH IN TRANSITION ECONOMIES INCOME INEQUALITY?

Abstract

The income inequality issue, along with being a highly debated subject in the literature recently, and the inadequate number of studies focusing on the transition economies with regards to income inequality constitute the starting point of this study. In the transition economies, significant constrictions in national income have been observed in the early years of transition (along with the economic stagnation). These countries have followed international expansion policies within the context of transition to market economy. This orientation also affected the consumption habits. With the transition process, the income distribution in these countries started to deteriorate and inequality in income distribution rose. Therefore, with this study, it is aimed to determine the factors which affected the income inequality trend for the post 1990 period and to discern the effect of these factors.