Is the Technology-Oriented Kuznets Curve Hypothesis Valid in Türkiye? An Assessment in the Context of SDG-10

Murat Akça (), Ömer Uğur Bulut, Samet Topal, Önder Balcı, Deniz Özyakışır and Serhat Çamkaya
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Murat Akça: Faculty of Economics and Administrative Sciences, Kafkas University, 36000 Kars, Türkiye
Ömer Uğur Bulut: Faculty of Economics and Administrative Sciences, Kafkas University, 36000 Kars, Türkiye
Samet Topal: Faculty of Economics and Administrative Sciences, Kafkas University, 36000 Kars, Türkiye
Önder Balcı: Faculty of Economics and Administrative Sciences, Kafkas University, 36000 Kars, Türkiye
Deniz Özyakışır: Faculty of Economics and Administrative Sciences, Kafkas University, 36000 Kars, Türkiye
Serhat Çamkaya: Faculty of Economics and Administrative Sciences, Kafkas University, 36000 Kars, Türkiye

Sustainability, 2025, vol. 17, issue 10, 1-19

Abstract: Technological advancements around the world have generated important discussions about their impact on income distribution, the type of economic growth, and social welfare. These improvements are critical for both economic development and social inequality in developing countries such as Türkiye. The paper examines the long-run impact of technological innovation on income inequality (IEQ) in Türkiye by testing the Technological Kuznets Curve (TKC) hypothesis. The model uses data from 1990 to 2021 and represents IEQ by the Gini coefficient, technological innovation by patent applications, along with public expenditures used as control variables. The findings of the Fourier ADL cointegration test support the validity of the TKC hypothesis for Türkiye. This suggests that technological innovation increases inequality until the critical turning point in 2008, when the threshold number of 2015 patent applications was exceeded. Using Fourier FMOLS, DOLS, and CCR methods for robustness checks, the main results show public expenditures as a significant factor stabilizing long-term income dynamics. These results imply that growth strategies in the area of technology development should not merely favor innovation but also include measures to increase social welfare in Türkiye. This requires not just the stabilizing role of public spending, but technological growth supported by investment in education, skills, and social welfare.

Keywords: income inequality; patent applications; public expenditures; sustainable development; Fourier cointegration (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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