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Development outcomes, resource abundance,and the transmission through inequality

The paper studies the effect of resource abundance on human development. A simple theory is presented to show that resource abundance negatively affects human development through its effect on inequality. The prediction of the theory is then tested using a system of three equations. Estimates indicate that the transmission channel through inequality is statistically significant and economically relevant even after controlling for per-capita income, institutional quality, and other determinants of both human development and inequality.

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File URL: http://www.uq.edu.au/economics/mrg/3610.pdf
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Paper provided by School of Economics, University of Queensland, Australia in its series MRG Discussion Paper Series with number 3610.

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Handle: RePEc:qld:uqmrg6:36
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