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Development outcomes, resource abundance, and the transmission through inequality

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  • Carmignani, Fabrizio

Abstract

The paper studies the effect of resource abundance on human development in light of two complementary hypotheses: (i) resource abundance increases the inequality of income distribution within a country and (ii) higher income inequality reduces human development. The estimation of a system of equations provides support to both hypotheses. In addition, results suggest that resource abundance might also affect human development by reducing the quality of institutions. However, while statistically significant, this effect is quantitatively small. Finally, there is evidence of a strong, negative direct effect of resource abundance on human development after controlling for inequality, institutional quality, and the level of per-capita income.

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Bibliographic Info

Article provided by Elsevier in its journal Resource and Energy Economics.

Volume (Year): 35 (2013)
Issue (Month): 3 ()
Pages: 412-428

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Handle: RePEc:eee:resene:v:35:y:2013:i:3:p:412-428

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Web page: http://www.elsevier.com/locate/inca/505569

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Keywords: Resource abundance; Human development; Inequality; Institutional quality;

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Cited by:
  1. Cockx, Lara & Francken, Nathalie, 2014. "Extending the concept of the resource curse : Natural resources and public spending on health," IOB Working Papers 2014.01, Universiteit Antwerpen, Institute of Development Policy and Management (IOB).

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