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Does Natural Resource Extraction Mitigate Poverty and Inequality? Evidence from Rural Mexico and a Lacandona Rainforest Community

This paper looks at whether income from natural resource extraction affects poverty and inequality and the impact on changes in prices of natural resources on inequality. It uses the example of the Xate palm to illustrate the impact of price changes at the local level. The findings highlight the importance of income from natural resource extraction in alleviating poverty and income inequality in rural Mexico. Inequality in the distribution of natural resource income is relatively high but favours the poor.