Oil and Growth in the Republic of Congo

41 Pages Posted: 23 Aug 2006

See all articles by Rina Bhattacharya

Rina Bhattacharya

International Monetary Fund (IMF)

Dhaneshwar Ghura

International Monetary Fund (IMF)

Date Written: August 2006

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.

Keywords: Oil, conflicts, economic growth

JEL Classification: O4, O55

Suggested Citation

Bhattacharya, Rina and Ghura, Dhaneshwar, Oil and Growth in the Republic of Congo (August 2006). IMF Working Paper No. 06/185, Available at SSRN: https://ssrn.com/abstract=926240

Rina Bhattacharya (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Dhaneshwar Ghura

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

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