The impact of economic freedom and democracy on income inequality: a study of selected majority developing countries

Economic freedom is the realization of productive activities without any limitations or restrictions. Unrestricted activities can have a positive impact on the economic development processes of societies In this context, the aim of the study is to investigate whether factors such as economic freedom and its subcomponents, democracy coefficient, and per capita income level have a significant effect on income inequality.. The research conducted for 17 different countries, mostly selected from developing countries, including Turkey, and for the period 1995-2020. Four different quantile intervals constructed through quantile regression. According to the results, improvement in property rights has an increasing effect on income inequality for all quantile levels, while financial freedom and investment freedom have a decreasing effect on income inequality. Increasing per capita income levels and democracy have also had the effect of reducing income inequality for different quantile groups.