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Natural resources and wealth inequality: a cross-country analysis

Author

Listed:
  • Sosson Tadadjeu

    (University of Dschang , Cameroon)

  • Henri Njangang

    (University of Dschang , Cameroon)

  • Simplice A. Asongu

    (Yaoundé, Cameroon)

  • Yann Nounamo

    (University of Douala, Douala, Cameroon)

Abstract

This study investigates the impact of natural resources on wealth inequality as a first attempt on a panel of 45 developed and developing countries over the period 2000-2014. Using the Generalized Method of Moments, the results provide stong evidence that natural resources increase wealth inequality within a linear empirical framework. These results are robust to the use of alternative natural resources and wealth inequality measures. Additionnaly, a nonlinear analysis provides evidence of an inverted U shaped relationship between natural resources and wealth inequality. The net effect of enhancing natural resources on wealth inequality is positive and building on the corresponding conditional negative effect, the attendant natural resource thresholds for inclusive development are provided. It follows that while natural resources increase wealth inequality, some critical levels of natural resources are needed for natural resources to reduce wealth inequality.

Suggested Citation

  • Sosson Tadadjeu & Henri Njangang & Simplice A. Asongu & Yann Nounamo, 2021. "Natural resources and wealth inequality: a cross-country analysis," Research Africa Network Working Papers 21/019, Research Africa Network (RAN).
    • Handle: RePEc:abh:wpaper:21/019
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    References listed on IDEAS

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    Cited by:

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    2. Alvarado, Rafael & Cuesta, Lizeth & Kumar, Pavan & Rehman, Abdul & Murshed, Muntasir & Işık, Cem & Vega, Nora & Ochoa-Moreno, Santiago & Tillaguango, Brayan, 2022. "Impact of natural resources on economic progress: Evidence for trading blocs in Latin America using non-linear econometric methods," Resources Policy, Elsevier, vol. 79(C).
    3. Tadadjeu, Sosson & Njangang, Henri & Asongu, Simplice A. & Kamguia, Brice, 2023. "Natural resources, child mortality and governance quality in African countries," Resources Policy, Elsevier, vol. 83(C).
    4. Njangang, Henri & Beleck, Alim & Tadadjeu, Sosson & Kamguia, Brice, 2022. "Do ICTs drive wealth inequality? Evidence from a dynamic panel analysis," Telecommunications Policy, Elsevier, vol. 46(2).
    5. Sadeghi Amroabadi, Behrouz, 2022. "Analyzing the Asymmetric Cumulative Effects of Rentier State on Income Inequality in Mena Countries," Quarterly Journal of Applied Theories of Economics, Faculty of Economics, Management and Business, University of Tabriz, vol. 9(3), pages 113-146, December.
    6. Henri Njangang & Alim Beleck & Sosson Tadadjeu & Brice Kamguia, 2021. "Do ICTs drive wealth inequality? Evidence from a dynamic panel analysis," Working Papers of the African Governance and Development Institute. 21/057, African Governance and Development Institute..
    7. Gemicioğlu, Selçuk & Soyhan, Sinem & Mollavelioğlu, M. Şükrü, 2024. "Do natural resources lead to a curse or blessing in terms of income inequality?," Resources Policy, Elsevier, vol. 88(C).
    8. Henri Njangang & Alim Beleck & Sosson Tadadjeu & Brice Kamguia, 2021. "Do ICTs drive wealth inequality? Evidence from a dynamic panel analysis," Working Papers 21/057, European Xtramile Centre of African Studies (EXCAS).
    9. Simplice A. Asongu & Beatrice D. Simo-Kengne, 2022. "Demographic Change and Wealth Inequality: Global Evidence," Working Papers of the African Governance and Development Institute. 22/085, African Governance and Development Institute..

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    More about this item

    Keywords

    Oil wealth; Natural resources; Wealth inequality; Sustainable development;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F54 - International Economics - - International Relations, National Security, and International Political Economy - - - Colonialism; Imperialism; Postcolonialism
    • L71 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Hydrocarbon Fuels

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