The Effects of Urbanization, Life Expectation at Birth and Commercialization on Income Inequality: A Research on the Community of the Independent States and Some Baltic Countries

One of the important results of economic development is the development of trade and the increase in welfare. A reflection of the increase in welfare is the prolongation of human life and the increase in urbanization. Through these indicators, societies are expected to develop economically and socially. In this study, as a reflection of welfare, the effect of commercialization, average life expectancy and urbanization on income inequality in the Commonwealth of Independent States countries and some Baltic countries that gained independence after the dissolution of the Soviet Union after 1991 were investigated. In the study, trade openness and the share of countries in world trade representing commercialization, urbanization representing the increase in welfare, and disposable Gini coefficient and market Gini coefficient representing income inequality examined. For the estimations, four models were created and different results were obtained for each model. In the analysis process, descriptive statistics, correlation matrix, multicollinearity, cross-section dependence, heteroscadasticity, autocorrelation tests were applied. Depending on the test results, the Driscoll-Kraay test was applied and the results were estimated. According to the results, it can be said that while commercialization has a positive effect on income inequality, urbanization has a negative effect on income inequality.