Impact of dependency on the income of natural resources on income inequality in the countries of the Andean Community

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Published: jul. 15, 2020
Keywords:
Inequality, Natural resources, Andean Community of Nations

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Karen Silva
Universidad Nacional de Loja
Brayan Tillaguango
Universidad Nacional de Loja

Abstract

This research analyzes the impact of dependence on natural resources on income inequality, using time series data for the countries of the Andean Community of Nations in the period 1990-2015, using cointegration techniques. An ARDL model is proposed for the long-term relationship, an error correction model (VEC) for the short term, and the Granger causality test. The results according to the ARDL model indicate that there is a long-termbalance between the rent of natural resources and income inequality. In the VEC model, it was determined that there is a short-term equilibrium between the analyzed variables. Using the Granger causality test, a unidirectional relationship between the variables of Bolivia and Colombia was determined.

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How to Cite
Silva, K., & Tillaguango, B. (2020). Impact of dependency on the income of natural resources on income inequality in the countries of the Andean Community. Revista Económica, 5(1), 28–34. Retrieved from https://revistas.unl.edu.ec/index.php/economica/article/view/768
Issue
Vol. 5 No. 1 (2018): Revista Económica vol 5 (Julio-Diciembre 2018)
Section
RESEARCH ARTICLES
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