Abstract

Prevailing research suggest that inequality has a negative impact on economic growth. We hypothesize that countries that have abundant natural resources stand to suffer more from income inequality. Using the system generalized method of moments (GMM) dynamic panel estimation method and data set for the period 1988–2012, we compare the relationship between inequality and economic growth in resource and non-resource abundant countries. Our results confirm that the negative impact of income inequality on economic growth is amplified for countries that are endowed with abundant natural resources. Therefore, we propose that reducing income inequality could mitigate the detrimental impact of resource abundance on economic growth.

Full Text
Paper version not known

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.