Effect of economic growth on income inequality in sub-Sahara Africa: does the natural resource governance play a role?

We examine the effect of natural resource governance on the impact of economic growth on income inequality in Sub-Saharan African (SSA) countries, using data from a panel of 40 countries in which natural resource revenues represent at least 5% of GDP over the period 2001–2020. Dynamic panel data models are estimated using the System Generalized Method of Moments technique. Estimation yields two important results. First, economic growth is found to be increasing income inequality in these countries, whatever the income inequality measure is considered. Second, natural resource governance improvement, captured by the EITI_Engagement and by the EITI_Compliance, is found to be directly reducing income inequality and to be reducing the income inequality increasing effect of economic growth. We conclude by recommending that SSA natural resource-rich countries, in search of justice, peace, and development, should engage and conform to EITI requirements. Keywords: Natural resource governance, income inequality, economic growth, Sub-Saharan Africa.