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Natural Resources, Openness and Income Inequality in Iran


  • Hamideh Mohtashami Borzadaran

    () (Department of Economics, Ferdowsi University of Mashhad (FUM), International Branch, Mashhad, Iran)

  • Mehdi Behname

    () (Department of Economics, Ferdowsi University of Mashhad (FUM), International Branch, Mashhad, Iran)

  • Sayed Mahdi Mostafavi

    () (Department of Economics, Ferdowsi University of Mashhad (FUM), International Branch, Mashhad, Iran)


The aim of this paper is to survey the relationship among natural resource, income inequality and openness in Iran by using the Auto Regressive Distributed Lag (ARDL) model in the period 1980-2009. The stationary test reveals that our variables are both I(0) and I(1), so for that reason, we used the ARDL approach to estimate long run and the short run relations between the variables. The results show that, in the long-run and the short-run, the GDP per capita, Land, Openness and literacy rate have a negative effect on income equality; the total natural resource rents has a positive effect on income equality. The oil revenue has a negative effect on income inequality in the short run, and it has a positive effect on income equality in the long run.

Suggested Citation

  • Hamideh Mohtashami Borzadaran & Mehdi Behname & Sayed Mahdi Mostafavi, 2013. "Natural Resources, Openness and Income Inequality in Iran," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 16(49), pages 3-26, September.
  • Handle: RePEc:rej:journl:v:16:y:2013:i:49:p:3-26

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    References listed on IDEAS

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    More about this item


    ARDL; Income inequality; Iran Natural Resources; Openness;

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East


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