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Natural Resources and Income Equality: the role of Ethnic divisions

  • Ruikand Marcus Fum
  • Roland Hodler

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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Paper provided by Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford in its series OxCarre Working Papers with number 023.

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Date of creation: 2009
Date of revision:
Handle: RePEc:oxf:oxcrwp:023
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  1. 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.
  2. Chong, Alberto & Gradstein, Mark, 2004. "Inequality and Institutions," CEPR Discussion Papers 4739, C.E.P.R. Discussion Papers.
  3. 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.
  4. Francesco Caselli, 2007. "On the theory of ethnic conflict," 2007 Meeting Papers 162, Society for Economic Dynamics.
  5. 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.
  6. Sylwester, Kevin, 2004. "A note on geography, institutions, and income inequality," Economics Letters, Elsevier, vol. 85(2), pages 235-240, November.
  7. Roland Hodler, 2004. "The Curse of Natural Resources in Fractionalized Countries," Diskussionsschriften dp0404, Universitaet Bern, Departement Volkswirtschaft.
  8. Brunnschweiler, Christa N. & Bulte, Erwin H., 2008. "The resource curse revisited and revised: A tale of paradoxes and red herrings," Journal of Environmental Economics and Management, Elsevier, vol. 55(3), pages 248-264, May.
  9. Benedikt Goderis & Samuel W. Malone, 2008. "Natural Resource Booms and Inequality: Theory and Evidence," Economics Series Working Papers WPS/2008-11, University of Oxford, Department of Economics.
  10. 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.
  11. 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.
  12. van der Ploeg, Frederick, 2006. "Challenges and Opportunities for Resource Rich Economies," CEPR Discussion Papers 5688, C.E.P.R. Discussion Papers.
  13. Barro, Robert J, 2000. " Inequality and Growth in a Panel of Countries," Journal of Economic Growth, Springer, vol. 5(1), pages 5-32, March.
  14. 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.
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