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• W4283726132 abstract "Purpose The aim of this empirical study is to examine the determinants of income inequality with particular concentration on the impact of fossil fuel subsidies, while controlling for corruption, economic uncertainty and democratisation in developing nations. Design/methodology/approach Generalised method of moments (GMM) is the principal method used in this study due to time and cross-sectional dimensions of the series under observation. Augmented mean group (AMG) method has been used as an alternative estimator. Findings The results revealed that increase in fossil fuel subsidies causes greater income inequality. The results indicate that corruption and uncertainty aggravate the impact of fossil fuel subsidies on inequality. The results are not materially different when an alternative estimation technique is used to estimate the regressions. Research limitations/implications This study uses data for 31 developing countries. So, with availability of more datasets in the future, further studies can include more countries in their analyses. Practical implications Price reforms resulting in a major decrease in the fossil fuel subsidies is needed in these developing countries. The authorities must ensure that fiscal savings, structural adjustment and enhanced efficiency in production resulting from energy price reforms serve as catalyst to promote income distribution in these countries. Originality/value The author’s first addition to the literature is that the study has concentrated on the fossil fuel subsidies and income inequality relationship, which has not been sufficiently treated in the existing literature. Without adequately knowing the key factors determining income inequality, it may be difficult to use appropriate programmes that will safeguard appropriate income distribution. Peer review The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-11-2021-0675" @default.
• W4283726132 created "2022-07-01" @default.
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• W4283726132 date "2022-07-01" @default.
• W4283726132 modified "2023-09-26" @default.
• W4283726132 title "The impact of fossil fuel subsidies on income inequality: accounting for the interactive roles of corruption and economic uncertainty" @default.
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• W4283726132 doi "https://doi.org/10.1108/ijse-11-2021-0675" @default.
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