The spatial curse of natural resources and its effect on cross-country income inequality
Fabrizio Carmignani
Chapter 15 in Elgar Companion on Inequality and Natural Resources, 2026, pp 328-355 from Edward Elgar Publishing
Abstract:
This chapter addresses two interrelated questions: (1) Does resource intensity in a domestic country influence the economic performance of neighboring countries, either positively or negatively? (2) If natural resources exert a spatial effect, does this exacerbate income inequality across countries? Drawing on cross-country and panel data evidence from a large sample of nations, the chapter provides a clear answer to the first question: yes, and the effect is negative. The second question is more nuanced and requires simulation analysis, but ultimately, the answer is also yes. This potentially disruptive combination of negative spatial effects and increased inequality calls for careful consideration of policy options at both national and regional levels.
Keywords: Natural Resources; Cross-country Income Inequality; Spatial Inequality Effects; Income Regressions; Growth Regressions (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035327362
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