Özet:

The rapidly growing foreign direct investment (DYY) with globalization, on the one hand, enables technological development and integration with international markets, while on the other hand, many macroeconomic variables such as growth, employment and income inequality are influenced by different frameworks. DYY is determining in income inequality through labour markets. DYY, which is focused especially on the technology-intense sectors, can thrive existing income inequalities in such a way as increasing the need for qualified labour and leading to wage inequalities. But in some cases, by reducing the profit and wage difference between the labour force and the employer, it can reduce the income inequalities between low and medium income households and high income households. When evaluated from this framework, the final effect of DYY varies depending on many parameters. In this context, the study aimed at studying the effects of the DYY arriving in Turkey in the period 1974-2015 on income inequality. According to the analysis findings obtained using the ARDL border test, where the Gini index as a dependent variable, as an independent variable, as well as the public expenditure, inflation and trade transparency variables are included, the DYY increases long-term income inequality.