Akademik Veri Yönetim Sistemi
Montes Taurus Journal of Pure and Applied Mathematics, cilt.6, sa.3, ss.299-312, 2024 (Scopus)
The objective of this study is to examine the impact of functional income distribution on aggregate demand in Turkiye between ¨ 1988 and 2023, employing the Post-Keynesian model as a theoretical framework. This is done by estimating the marginal effect of the profit share on each of the components of aggregate demand (consumption, investment, exports and imports). In this study, the ARDL bounds test method is used as the econometric method, and to ensure the reliability of the results, the Zivot and Andrews [32] unit root test and the Fourier-ADF unit root test, proposed by Enders and Lee [7], are used in addition to the ADF unit root test. The results indicate that the demand regime in Turkiye is profit driven in the period 1988-2023. The e ¨ ffect of the profit share on consumption is contractionary for aggregate demand, while its effect on net exports is positive for growth. In fact, since the effect of the profit share on net exports is more dominant than that on consumption, the demand regime for Turkiye is obtained ¨ with a profit-led. This study makes an important contribution to the literature by including the impact of the pandemic in 2020 on Turkiye’s demand regime.