IDEAS home Printed from https://ideas.repec.org/a/eme/ijdipp/ijdi-11-2022-0244.html
   My bibliography  Save this article

Effect of natural resources rents on income inequality in sub-Saharan Africa: exploring the direct and indirect transmission mechanisms

Author

Listed:
  • Armand Fréjuis Akpa

Abstract

Purpose - The reduction of income inequality and the ways to fight against it are source of debate among scientific communities and policymakers. Rents from natural resources that African countries are endowed with remain one way to cope with income inequality, but its influence on income inequality is mixed. Thus, the purpose of this paper is to explore the direct and indirect transmission mechanisms through which natural resources rents can affect income inequality in sub-Saharan Africa. Design/methodology/approach - This study obtained data on income inequality from the Standardised World Income Inequality Data database, natural resources rents from World Bank’s Development Indicators and education from United Nations Development Programme for the period 1990–2018. It was analysed using system generalised method of moments. Findings - The results of this study showed that natural resources rents solely increased income inequality, but its interaction with education significantly reduced income inequality. Research limitations/implications - These findings suggest that the reduction of income inequality by natural resources rents passes through a good education system in sub-Saharan African countries. Originality/value - In previous studies, authors analysed the role of education in the relationship between natural resources rents and income inequality by inserting the two variables separately in the model. But in this paper, the author analysed the role of education in the relationship between natural resources rents and income inequality by using the interaction of natural resources rents and education.

Suggested Citation

  • Armand Fréjuis Akpa, 2023. "Effect of natural resources rents on income inequality in sub-Saharan Africa: exploring the direct and indirect transmission mechanisms," International Journal of Development Issues, Emerald Group Publishing Limited, vol. 22(2), pages 167-181, April.
    • Handle: RePEc:eme:ijdipp:ijdi-11-2022-0244
    DOI: 10.1108/IJDI-11-2022-0244
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/IJDI-11-2022-0244/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/IJDI-11-2022-0244/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/IJDI-11-2022-0244?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Armand Fréjuis Akpa & Dado Fabrice Degbedji & Augustin Foster Chabossou, 2024. "Assessing the effect of financial inclusion on human capital in West Africa: an heterogeneous analysis based on income level," SN Business & Economics, Springer, vol. 4(1), pages 1-18, January.
    2. Asgari, Heshmatolah & Moridian, Ali, 2023. "Investigating the Role of Human Capital and Shadow Economy in the Impact of Natural Resource Rent on Income Inequality with Regime Change (in Persian)," The Journal of Planning and Budgeting (٠صلنامه برنامه ریزی و بودجه), Institute for Management and Planning studies, vol. 28(4), pages 75-110, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:ijdipp:ijdi-11-2022-0244. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.