On Distribution: Relationship between International Competitiveness and Domestic Distribution

36497

This study examines the relationship between domestic distribution and international distribution with an emphasis on how domestic distribution influences the international competitiveness. With equality of domestic income distribution, society’s consumption structure will be transformed from many variety-few consumptions to few variety-many consumptions. Thus, domestic production targeting specific products will become more efficient as the buyer will increase the bargaining power of the country when import structure of the country takes up few variety-many consumptions form with equality in income distribution. Equality in income distribution is an element that will increase citizens’ commitment to their country and prevent immigration. For this reason, distribution is a factor that will enable the country to retain its sources of production. Thus, domestic income distribution determines the competitiveness of the country among other countries. This theory, which is the basis of the present study, was observed experimentally and meaningful results were obtained. The tests were performed with horizontal cross section data, and created regression models for 2012, 2013, 2014. All models yielded similar results. According to the results, the deterioration in the distribution of the domestic income reduces the competitiveness of the country.

456

Global Competitiveness , Income Distribution , Productivity , Bargaining Power , Foreign Trade

Journal Of Economics an‎d Administrative Sciences

469

Journal Of Economics an‎d Administrative Sciences