the Effect of Good Governance on Income Inequality in OPEC Countries

Document Type : Original Article

Authors

Hamid Asayesh ¹

hadi rahmanifazli ²

reza shamsollahi ³

fattaneh niknam ⁴

¹ Economic

² Assistant Professor, Department of Public Policy and Political Economy, Faculty of Law and Political Sciences, Allameh Tabatabai University

³ Master of Economics, Faculty of Humanities, Ayat A... Borujerdi University, Borujerd, Iran

⁴ Master of Economics, Faculty of Management and Economics, Shahid Bahonar University, Kerman, Iran

https://doi.org/10.22067/erd.2025.88229.1238

Abstract

Income inequality is one of the most important economic and social issues governing any society, which is influenced by various economic and non-economic factors. Meanwhile, paying attention to issues such as good governance and related components is one of the most important factors affecting income inequality in different societies. Therefore, the main goal of this research is to investigate the impact of governance components on income inequality in OPEC member countries during the period of 2002-2021 using the Pamel ARDL model. The obtained results indicate that an increase of one unit of corruption has led to an increase of 1.46 units in the Gini coefficient. Oil revenues have had a positive effect on income inequality. So that with the increase of one unit of oil revenues, the Gini coefficient (index of income inequality) has increased by 0.059 units. Political stability has a negative impact on income inequality. So that an increase of one unit in the political stability of income inequality decreases by 4.156 units. The quality and efficiency of the government has a negative impact on income inequality. So that with an increase of one unit in quality and efficiency, income inequality decreases by 1.106 units in OPEC member countries. Government size has a positive effect on income inequality. Thus, with the increase of one unit of government size, income inequality in OPEC member countries has increased by 0.374.

Keywords

Good Governance

Income Inequality

Opec

Subjects

• economic development

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