Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/244194 
Year of Publication: 
2021
Series/Report no.: 
AGDI Working Paper No. WP/21/019
Publisher: 
African Governance and Development Institute (AGDI), Yaoundé
Abstract: 
This study investigates the impact of natural resources on wealth inequality as a first attempt on a panel of 45 developed and developing countries over the period 2000-2014. Using the Generalized Method of Moments, the results provide stong evidence that natural resources increase wealth inequality within a linear empirical framework. These results are robust to the use of alternative natural resources and wealth inequality measures. Additionnaly, a nonlinear analysis provides evidence of an inverted U shaped relationship between natural resources and wealth inequality. The net effect of enhancing natural resources on wealth inequality is positive and building on the corresponding conditional negative effect, the attendant natural resource thresholds for inclusive development are provided. It follows that while natural resources increase wealth inequality, some critical levels of natural resources are needed for natural resources to reduce wealth inequality.
Subjects: 
Oil wealth
Natural resources
Wealth inequality
Sustainable development
JEL: 
F21
F54
L71
Document Type: 
Working Paper

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