المجلة الجزائرية للعلوم الإجتماعية والإنسانية
Volume 12, Numéro 2, Pages 213-228
2024-12-22
Oil Rent And Institutional Quality: Effects On Income Inequalities In Algeria
Authors : Mehidi Kahina .
Abstract
Our study aims to determine how income derived from oil exploitation and the effectiveness of governmental structures shape income inequality patterns in Algeria. The methodology employs lagged autoregressive models over the period 1980-2022, and the econometric results lead to two significant conclusions. First, our findings suggest a curvilinear relationship between petroleum revenues and economic disparities. Initially, increased oil income seems to reduce inequality. However, this trend does not persist in a linear fashion. As oil profits continue to grow over time, we observe a potential reversal, where these same revenues may contribute to widening disparities. Second, we conclude that the reduction in income inequality resulting from increased oil rent is closely tied to the quality of the institutional framework.
Keywords
Income inequality ; Oil rent ; Institutional quality ; ARDL ; Algeria
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