Analyzing the Asymmetric Cumulative Effects of Rentier State on Income Inequality in Mena Countrie

Document Type : Research Paper

Author

Assistant Professor of Economics, Shahid Chamran University of Ahvaz, Ahvaz, Iran

Abstract

Income distribution is one of the most critical development goals of any country. MENA countries, like many developing countries suffer from widespread inequalities despite high energy and natural resource incomes. On the other hand, government sources of rent as insecure resources for economic policy have been used especially to reduce class gaps. In the research literature, the existence of natural resources has been described as both a factor and an obstacle to development. On the other hand, increasing and decreasing rent resources can have different effects on economic development.  Given the importance of this topic, the aim of this study is to analyze the asymmetric cumulative effects of the rentier state on inequality in the MENA countries from 1990 to 2019. The research method is correlational and applied. The method used is the non-linear ARDL panel method. In other words, using the NARDL method, long-term panel data, and coherent and asymmetric analysis are all study innovations. Although the results of the study reject the linear relation, but also show that the null hypothesis of the non-relationship between the income inequality index (Gini) and the positive and negative components of rent are rejected. The results also show that there is no asymmetry in the short and long term. Based on these results, the positive and negative effects of rent distribution on income inequality in MENA countries are completely different and on this basis, completely different policies must be adopted to reduce income inequality and economic development

Keywords

Main Subjects

References

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Quarterly Journal of Applied Theories of Economics
Volume 9, Issue 3 - Serial Number 34
December 2022
Pages 113-146

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