Natural resource dependance and income inequality in the Gulf

In this study, we investigate the relationship between natural resource economic dependance and income distribution in the Gulf region. Given that the region has high income inequality and high natural resource dependance, it provides a unique socioeconomic atmosphere worth looking into. We conduct a linear regression model on 19 countries in the Middle East and North Africa in order to analyze and compare the 6 countries in the Gulf region. Among other variables and fixed effects, the model regresses the Palma ratio (a measure of income inequality) on natural resource contribution to GDP. For the sample and data used in this model, the results are statistically insignificant for the relationship between natural resource dependance and income inequality in the Gulf. Since none of the regression model coefficients are statistically significant, it is not possible to conclude that there is a relationship between resource dependance and the Palma inequality ratio. That is why we recommend future research to continue investigating factors that affect income distribution.

 

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  • Author

    Joud Ghalayini

  • Advisors

    Agustin Indaco, Fuad Farooqi