Democratic Institutions, Natural Resources, and Income Inequality
Christopher Hartwell (),
Eva Horvathova () and
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Eva Horvathova: Czech Academy of Sciences
Comparative Economic Studies, 2019, vol. 61, issue 4, No 2, 550 pages
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)
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