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The purpose of this paper is to analyse the effects of natural resources on income inequality conditional on economic complexity in 111 developed and developing countries from 1995 to 2016. The system-GMM results show that economic complexity reverses the positive effects of natural resource dependence on income inequality. Furthermore, results are robust to the distinction between dependence on point resources (fossil fuels, ores, and metals), dependence on diffuse resources (agricultural raw material), and resource abundance. Finally, there are significant differences between countries, depending on the level of ethnic fragmentation and democracy. [ABSTRACT FROM AUTHOR]

Productivity growth has contributed significantly to boost living standards in many regions of the world. Concerns about certain emerging nations' dependence on unprocessed natural resource exports have led some analysts to be sceptical about the possibilities for structural reform in resource-rich countries. We hope to contribute to the research on the nexus between natural resources and growth by examining the impact of the dependence on resources on TFP growth in 91 developing countries from 1980 to 2019. Findings demonstrate unequivocally that TFP growth is lower in resource-rich emerging nations. The results are robust to several tests, including additional control variables and the partition of resource reliance between point-source and diffuse-source resources. Furthermore, the establishment and maintenance of democratic and economic institutions enable resource-rich countries to avoid the curse. [ABSTRACT FROM AUTHOR]