Özet:

Income inequality means that the income distribution between individuals in a country, groups that make up a population or countries is irregular. Reducing income inequality is important not only to a fairer income distribution and to address the social concerns generated by increased income inequality, but also to provide a good environment for economic growth and increased overall factor efficiency (TFV). This study aims to identify the relationship between income inequality and TFV for the period 1994-2019 in the BRICS-T countries. In a triple-stage empirical method, the results from Panel FMOLS (Fullly Modified Ordinary Least Squares) and DOLS (Dynamic Ordinary Least Squares) estimates show that income inequality has a negative impact on TFV. Based on the findings of the study, some policy suggestions may be submitted in order to minimize the negative effects of income inequality. The long-term macroeconomic policies in the BRICS-T countries should be established and well coordinated, in the first place, with the aim of reducing the unfair distribution of income. In these countries, policy makers should carefully monitor the effects of legal practices such as increased rate of taxes and minimum wages to ensure a fairer income distribution.

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