Document Type : ORIGINAL ARTICLE
Authors
1 Ph. D. Student of Economics, Department of Economics, Faculty of Economics and Social Sciences, Alzahra University, Tehran, Iran.
2 Professor of Economics, Department of Economics, Faculty of Economics and Social Sciences, Alzahra University, Tehran, Iran.
3 Associate Professor, Department of Economics, Faculty of Economics and Social Sciences, Alzahra University, Tehran, Iran.
Abstract
In the contemporary era, knowledge is recognized as a source of wealth for societies, and the role of new production factors in the production function is highly significant. The core of these new production factors is human beings; therefore, inequality can disrupt the process of economic growth and development by affecting individuals' motivation through these new production factors. Additionally, inequality has always been a key factor in development indicators. Thus, studying the determinants of income inequality is essential. In this regard, the present study uses a Dynamic Panel Data (DPD) model and the Generalized Method of Moments (GMM) approach to analyze the interactive effects of globalization and natural resource rents on income inequality in a selected group of countries from 2008 to 2020.
The results indicate that the interaction between globalization and natural resource rents has a positive and significant effect on income inequality. It is suggested that by adopting a strategy of converting natural resources into sustainable and productive capital, while strengthening the economic structure for effective participation in the global economy, a stable income stream can be created to finance supportive policies.
Furthermore, the findings show that gender inequality has a positive and significant impact on income inequality, while democracy has a negative and significant effect on income inequality. However, the impact of institutions on income inequality is negative but insignificant.
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