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Oil and Growth in the Republic of Congo

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  • Mr. Dhaneshwar Ghura
  • Ms. Rina Bhattacharya

Abstract

This paper investigates the linkages between oil and growth in Congo, where there appears to be no evidence of direct spillover effects. The empirical results suggest however that political instability has a negative effect on non-oil growth, and that the presence of oil could have fueled political instability by being associated with weakening institutions. The results also show that fiscal discipline is beneficial for growth. In addition, there are strong linkages between world oil prices and the real effective exchange rate, with movements in the latter having important indirect repercussions for growth.

Suggested Citation

  • Mr. Dhaneshwar Ghura & Ms. Rina Bhattacharya, 2006. "Oil and Growth in the Republic of Congo," IMF Working Papers 2006/185, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2006/185
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    Cited by:

    1. Prospere Backiny-Yetna & Quentin Wodon, 2009. "Profil et perceptions de la pauvreté en République du Congo en 2005," Perspective Afrique, Association Africaine pour les Sciences sociales, vol. 4(1-3), pages 1-21.
    2. Nir Klein, 2010. "The Linkage between the Oil and Non-oil Sectors: A Panel VAR Approach," IMF Working Papers 2010/118, International Monetary Fund.
    3. Colin O’Reilly, 2014. "Investment and Institutions in Post-Civil War Recovery," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 56(1), pages 1-24, March.
    4. Holger Fabig, 2008. "Modeling Macro-Critical Energy Sectors in Low-Income Countries: A General Framework and an Application to Côte d’Ivoire," IMF Working Papers 2008/156, International Monetary Fund.
    5. Stéphane Carcillo & Mr. Mauricio Villafuerte & Mr. Daniel Leigh, 2007. "Catch-Up Growth, Habits, Oil Depletion, and Fiscal Policy: Lessons from the Republic of Congo," IMF Working Papers 2007/080, International Monetary Fund.
    6. SAIBU, Olufemi Muibi, 2012. "Energy Resources, Domestic Investment and Economic Growth: Empirical Evidence from Nigeria," MPRA Paper 34392, University Library of Munich, Germany.
    7. Abubakar Lawan Ngoma & Normaz Wana Ismail & Zulkornain Yusop, 2016. "An Analysis of Real Oil Prices and Real Exchange Rates in Five African Countries," Foreign Trade Review, , vol. 51(2), pages 162-179, May.

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