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Comparative Economic Studies

, Volume 61, Issue 4, pp 531–550 | Cite as

Democratic Institutions, Natural Resources, and Income Inequality

  • Christopher A. HartwellEmail author
  • Roman Horvath
  • Eva Horvathova
  • Olga Popova
Article
  • 124 Downloads

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 

JEL Classification

Q32 Q34 D73 P48 

Notes

Acknowledgements

We thank Nauro Campos, Jan Mares, and an anonymous referee for helpful comments. Horvathova acknowledges support from the Grant Agency of the Czech Republic, Grant No. 17-16633S. Popova acknowledges support from Russian Science Foundation Grant No. 19-18-00262.

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© Association for Comparative Economic Studies 2019

Authors and Affiliations

  1. 1.Bournemouth UniversityPooleUK
  2. 2.Kozminski UniversityWarsawPoland
  3. 3.Charles UniversityPragueCzech Republic
  4. 4.Global Change Research InstituteCzech Academy of SciencesPragueCzech Republic
  5. 5.Leibniz Institute for East and Southeast European Studies (IOS)RegensburgGermany
  6. 6.CERGE-EIPragueCzech Republic
  7. 7.Graduate School of Economics and ManagementUral Federal UniversityYekaterinburgRussian Federation

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