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Natural resources and income inequality: The role of ethnic divisions

  • Fum, Ruikang Marcus
  • Hodler, Roland

We hypothesize that natural resources raise income inequality in ethnically polarized societies, but reduce income inequality in ethnically homogenous societies; and we present empirical evidence in support of this hypothesis.

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File URL: http://www.sciencedirect.com/science/article/B6V84-4YN5P8P-2/2/95811250938af8837a93b0b59f9453c1
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Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 107 (2010)
Issue (Month): 3 (June)
Pages: 360-363

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Handle: RePEc:eee:ecolet:v:107:y:2010:i:3:p:360-363
Contact details of provider: Web page: http://www.elsevier.com/locate/ecolet

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  1. Christa N Brunnschweiler & Erwin H Bulte, 2009. "Fractionalization and the Fight over Natural Resources: Ethnicity, language, religion, and the onset of civil war," OxCarre Working Papers 017, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
  2. Francesco Caselli & Wilbur John Coleman II, 2008. "On the Theory of Ethnic Conflict," CEDI Discussion Paper Series 08-08, Centre for Economic Development and Institutions(CEDI), Brunel University.
  3. Alberto Chong & Mark Gradstein, 2007. "Inequality and Institutions," The Review of Economics and Statistics, MIT Press, vol. 89(3), pages 454-465, August.
  4. Roland Hodler, 2004. "The Curse of Natural Resources in Fractionalized Countries," Diskussionsschriften dp0404, Universitaet Bern, Departement Volkswirtschaft.
  5. Benedikt Goderis & Samuel W Malone, 2008. "Natural Resource Booms and Inequality: Theory and Evidence," OxCarre Working Papers 008, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
  6. Sylwester, Kevin, 2004. "A note on geography, institutions, and income inequality," Economics Letters, Elsevier, vol. 85(2), pages 235-240, November.
  7. Christa N. Brunnschweiler & Erwin H. Bulte, 2006. "The Resource Curse Revisited and Revised: A Tale of Paradoxes and Red Herrings," CER-ETH Economics working paper series 06/61, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
  8. Leamer, Edward E. & Maul, Hugo & Rodriguez, Sergio & Schott, Peter K., 1999. "Does natural resource abundance increase Latin American income inequality?," Journal of Development Economics, Elsevier, vol. 59(1), pages 3-42, June.
  9. Antonio Spilimbergo & Juan Luis Londoño & Miguel Székely, 1997. "Income Distribution, Factor Endowments, and Trade Openness," Research Department Publications 4088, Inter-American Development Bank, Research Department.
  10. van der Ploeg, Frederick, 2006. "Challenges and Opportunities for Resource Rich Economies," CEPR Discussion Papers 5688, C.E.P.R. Discussion Papers.
  11. Jos� G. Montalvo & Marta Reynal-Querol, 2005. "Ethnic Polarization, Potential Conflict, and Civil Wars," American Economic Review, American Economic Association, vol. 95(3), pages 796-816, June.
  12. Barro, Robert J, 2000. " Inequality and Growth in a Panel of Countries," Journal of Economic Growth, Springer, vol. 5(1), pages 5-32, March.
  13. José Garcia Montalvo & Marta Reynal-Querol, 2004. "Ethnic polarization, potential conflict and civil wars," Economics Working Papers 770, Department of Economics and Business, Universitat Pompeu Fabra, revised Mar 2005.
  14. De Gregorio, Jose & Lee, Jong-Wha, 2002. "Education and Income Inequality: New Evidence from Cross-Country Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 48(3), pages 395-416, September.
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