 Governance in mitigating the effect of oil wealth on wealth inequality: A cross-country analysis of policy thresholdsHenri Njangang, Simplice Asongu, Sosson Tadadjeu, Yann Nounamo and Brice Kamguia Resources Policy, 2022, vol. 76, issue C Abstract: The study assesses the role of governance in modulating the effect of oil wealth on wealth inequality in 45 developed and developing countries. The empirical evidence is based on the system generalised method of moments. The findings show that oil rents unconditionally increase wealth inequality while govenance dyanmics (in terms of rule of law, corruption-control, government effectiveness, regulatory quality) moderate oil rents for an overall net negative effect on wealth inequality. Good governance thresholds at which the unconditional or non-interactive effect of oil rents on the wealth inequality changes from positive to negative are computed and discussed. It follows that while governance is a necessary condition for improving the redistributive effects of oil wealth, it becomes a sufficient condition for net positive improvements in wealth distribution only when some critical levels of good governance have been reached. Other policy implications are discussed. Keywords: Governance; Oil wealth; Wealth inequality; Panel data (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:76:y:2022:i:c:s0301420722000149 DOI: 10.1016/j.resourpol.2022.102561 Access Statistics for this article Resources Policy is currently edited by R. G. Eggert More articles in Resources Policy from Elsevier |
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