TITLE:
Effects of Oil Rent on Economic Development in the Republic of Congo
AUTHORS:
Cyriaque Mbingui, Fernand Owonda, Modeste Ndoudi Diakabana
KEYWORDS:
Oil Rent, Economic Development, Resource Curse, VECM
JOURNAL NAME:
Theoretical Economics Letters,
Vol.11 No.3,
June
28,
2021
ABSTRACT: The objective of this study is to analyze the
effects of oil rent on economic development in Congo over a period from 1987 to
2016. Following the estimation of the Vector Error Correction Model (VECM), the
result shows that the dependence on oil rent negatively affects the development
of Congo. The poor performance of growth and development in the Congo is mainly
linked to the deterioration of governance and the generalization of corruption.
This result allows us to formulate an economic policy implication that focuses
on the sustainable management of oil resources with future generations in mind
and by investing in the diversification of the country’s economic activities. This would help eradicate
poverty and improve the standard of living of the population.