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Democratic Institutions, Natural Resources, and Income Inequality

Author

Listed:
  • Christopher A. Hartwell

    (Bournemouth University
    Kozminski University)

  • Roman Horvath

    (Charles University)

  • Eva Horvathova

    (Czech Academy of Sciences)

  • Olga Popova

    (Leibniz Institute for East and Southeast European Studies (IOS)
    CERGE-EI
    Ural Federal University)

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.

Suggested Citation

  • Christopher A. Hartwell & Roman Horvath & Eva Horvathova & Olga Popova, 2019. "Democratic Institutions, Natural Resources, and Income Inequality," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 61(4), pages 531-550, December.
    • Handle: RePEc:pal:compes:v:61:y:2019:i:4:d:10.1057_s41294-019-00102-2
    DOI: 10.1057/s41294-019-00102-2
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    More about this item

    Keywords

    Institutions; Natural resources; Inequality; Democracy;
    All these keywords.

    JEL classification:

    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q34 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Natural Resources and Domestic and International Conflicts
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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