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<p>Income inequality remains a persistent challenge in resource-based African countries, where poor populations often depend heavily on natural resources. This study examines how governance quality, particularly control of corruption, influences the effectiveness of natural resource rents in reducing income inequality across 25 resource-based African countries from 1996 to 2023. Using Feasible Generalised Least Squares (FGLS), the results reveal that while rising natural resource rents alone tend to exacerbate inequality, stronger corruption control significantly mitigates it. Importantly, when corruption control accompanies resource wealth, effective governance transforms resource rents into a driver of inclusive growth, promoting equitable distribution through investments in education, health, and infrastructure. These findings underscore the need for strengthened anti-corruption frameworks, fiscal transparency, and economic diversification to ensure that resource wealth benefits the broader population. The study provides actionable insights for policymakers and a foundation for designing institutional reforms that harness natural resource wealth for sustainable and inclusive development in Africa.</p>

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Harnessing governance quality and natural resource rents to reduce income inequality in African resource-based countries

  • 期刊论文

  • 出版模式：

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  • 发表日期：

    2026年5月29日

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  • Michael Kouadio

摘要

Income inequality remains a persistent challenge in resource-based African countries, where poor populations often depend heavily on natural resources. This study examines how governance quality, particularly control of corruption, influences the effectiveness of natural resource rents in reducing income inequality across 25 resource-based African countries from 1996 to 2023. Using Feasible Generalised Least Squares (FGLS), the results reveal that while rising natural resource rents alone tend to exacerbate inequality, stronger corruption control significantly mitigates it. Importantly, when corruption control accompanies resource wealth, effective governance transforms resource rents into a driver of inclusive growth, promoting equitable distribution through investments in education, health, and infrastructure. These findings underscore the need for strengthened anti-corruption frameworks, fiscal transparency, and economic diversification to ensure that resource wealth benefits the broader population. The study provides actionable insights for policymakers and a foundation for designing institutional reforms that harness natural resource wealth for sustainable and inclusive development in Africa.