On 28th November OxTalks will move to the new Halo platform and will become 'Oxford Events' (full details are available on the Staff Gateway).
There will be an OxTalks freeze beginning on Friday 14th November. This means you will need to publish any of your known events to OxTalks by then as there will be no facility to publish or edit events in that fortnight. During the freeze, all events will be migrated to the new Oxford Events site. It will still be possible to view events on OxTalks during this time.
If you have any questions, please contact halo@digital.ox.ac.uk
While much ink has been spilled over the study of income inequality and economic growth,little attention has been paid to investigate the interaction between these variables of interest in resource-dependent economies. The present paper develops a two-sector small open economy model including two groups of households (the rich and the poor). The mechanismis derived by two forces: 1) a composition of productivity growth with Learning by Doing (LBD) and capital accumulation with absorptive capacity constraints on the supply-side and 2) a change in the aggregate demand of the non-traded goods with a non-homothetic preference on the demand-side. Applying a panel data approach for a sample database of 40 countries over the period 1975-2015, I evaluate the predictions of my theory. The main findings are fourfold. In response to a windfall income, first, the natural resource curse (i.e. the Dutch disease and Deindustrialization) appears. Second, income inequality rises if the non-traded sector is relatively capital-intensive while income inequality falls if the non-traded sector is relatively labor-intensive. Third, income inequality change tends to moderate the natural resource curse. Fourth, natural resource curse and income inequality change seem to be relatively more intensive in a democratic country than in a non-democratic country.