Abstract:

In the study was examined the relationship between economic growth and income distribution with the context of Kuznets hypothesis using the data of 25 countries which have appropriate data set and covering period between 2002-2013. In this framework the selected countries, from high-middle and high income groups; were examined with panel data method to point the relationship between growth and income distribution. The findings of the selected showed that there is a 'U' shaped relationship between economic growth and income distribution in contrast to “inverted-U” shaped Kuznets Hypothesis. According to this result, when income per capita increases the income inequality decreases at first but after a turning point it increases. Therefore, in this study, which covers the period of increasingly disregarding the social state concept, the identification of the existence of “U” shaped relationship in contrast to “inverted-U”, shows that weakened the mechanisms which prevent injustice in income distribution have evolved into a world.

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