Document Type : Original Article
Author
Assistant Professor, Department of Economics, Firuzkuh Branch, Islamic Azad University, Firuzkuh, Iran
Abstract
The purpose of this paper is to examine the effects of rising oil prices on wealth inequality in the oil-rich countries of Iran, Kuwait, Saudi Arabia, and the United Arab Emirates from 1995 to 2023. Using the static and time-varying difference-in-differences (DID) method, with Egypt, Morocco, Tunisia, and Turkey as the control group, the study analyzes the impact of the 2008 oil shock on wealth distribution in these countries. The results show that the effect of rising oil prices on wealth inequality varies across these countries. In Iran, wealth inequality has increased due to the unequal distribution of oil revenues and the lack of effective supportive policies. In Kuwait and the UAE, the concentration of wealth in the hands of economic elites and specific groups led to the wealthy classes benefiting from the rise in oil prices, while low-income groups were unable to take advantage of this increase. In contrast, in Saudi Arabia, government support policies and the proper distribution of oil revenues have prevented an increase in inequality. These findings suggest that the management of oil revenues and economic policies play a crucial role in wealth distribution.
Keywords
Main Subjects
)