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Natural resources and income inequality: economic complexity is the key

Published online by Cambridge University Press:  22 November 2023

Paul Awoa Awoa Open the ORCID record for Paul Awoa Awoa [Opens in a new window] ,
Henri Atangana Ondoa Open the ORCID record for Henri Atangana Ondoa [Opens in a new window]  and
Henri Ngoa Tabi
Paul Awoa Awoa*
Affiliation:
Department of Public Economics, University of Yaoundé II, Yaoundé, Cameroon
Henri Atangana Ondoa
Affiliation:
Department of Economic Analysis and Policies, University of Yaoundé II, Yaoundé, Cameroon
Henri Ngoa Tabi
Affiliation:
Department of International and Development Economics, Interdisciplinary Research Laboratory in Development Economics (LIRED), University of Yaoundé II, Yaoundé, Cameroon
*
*Corresponding author: Paul Awoa Awoa; Email: paulawoa2010@gmail.com
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Abstract

The purpose of this paper is to analyse the effects of natural resources on income inequality conditional on economic complexity in 111 developed and developing countries from 1995 to 2016. The system-GMM results show that economic complexity reverses the positive effects of natural resource dependence on income inequality. Furthermore, results are robust to the distinction between dependence on point resources (fossil fuels, ores, and metals), dependence on diffuse resources (agricultural raw material), and resource abundance. Finally, there are significant differences between countries, depending on the level of ethnic fragmentation and democracy.

Keywords

economic complexityincome inequalitynatural resourcespanel data

JEL classification

O13: Agriculture • Natural Resources • Energy • Environment • Other Primary Products O15: Human Resources • Human Development • Income Distribution • Migration C14: Semiparametric and Nonparametric Methods: General P51: Comparative Analysis of Economic Systems
Type
Research Article
Information
Environment and Development Economics , Volume 29 , Issue 2 , April 2024 , pp. 127 - 153
Copyright
Copyright © The Author(s), 2023. Published by Cambridge University Press

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