Does Mineral Resources Utilization and Governance Policy Induce Income Inequality: Contextual Findings from Historical Data of China

Xiaoyi Ren, Chen Wang and László Vasa

Politická ekonomie, vol. preprint

Abstract: In the current literature strand, most of the literature is devoted to the role played by mineral and governance policies in environmental quality. However, their criticality in income inequality is mainly overlooked by scholarly works. This research investigated the nexus of mineral and governance policies with income inequality while exploring the importance of per capita income, health expenditure, and poverty. Covering the extended period from 1984Q1 to 20223Q4 in the case of China, this research confirms the presence of long-run equilibrium association between variables. Due to the non-normal data distribution, this research uses quantile regression and a series of robust non-parametric and parametric approaches. The research concludes that mineral resources, health expenditure, governance efficiency, regulatory quality, and poverty headcounts significantly reduce income inequality. Wealth from mineral and health expenditures substantially improves the living standards of the general public. The governance policies are also beneficial in equal wealth distribution of the country. On the contrary, per capita income and government stability are the region's leading factors of income inequality. Based on the predicted results, this research recommends improved minerals management, strengthening of governance institutions and policies, and enhancement in health expenditure to tackle the issue of income inequality.

Keywords: Income inequality; mineral resources; governance policies; income; poverty; health expenditure; quantile regression (search for similar items in EconPapers)
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DOI: 10.18267/j.polek.1463

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