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Democratic Institutions, Natural Resources, and Income Inequality

Christopher Hartwell (), Roman Horvath, Eva Horvathova () and Olga Popova
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Eva Horvathova: Czech Academy of Sciences

Comparative Economic Studies, 2019, vol. 61, issue 4, No 2, 550 pages

Abstract: Abstract This paper examines how democratic institutions shape the nexus of natural resources and income inequality, under the hypothesis that democracy can help to alleviate the possible effects that resources may have on income inequality. Starting from a survey of the existing literature, we provide a cross-country regression analysis showing that the effect of natural resources on income inequality does indeed depend on democracy. Our results suggest that, if the level of democracy in a country is high, natural resources have the ability to lower inequality. This finding suggests several avenues for future research.

Keywords: Institutions; Natural resources; Inequality; Democracy (search for similar items in EconPapers)
JEL-codes: Q32 Q34 D73 P48 (search for similar items in EconPapers)
Date: 2019
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DOI: 10.1057/s41294-019-00102-2

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