TITLE:
Infrastructure Spending, Political Instability and Economic Growth
AUTHORS:
Gastonfils Lonzo Lubu, Jean Collins Musonda Kalusambo, Célestin Tondi Kikola, Junior Eleo Ambroise
KEYWORDS:
Infrastructure Spending, Political Instability, Economic Growth and the VECM Model, The Democratic Republic of Congo
JOURNAL NAME:
iBusiness,
Vol.15 No.2,
May
17,
2023
ABSTRACT: This study intends to examine the effects of
political unrest and government infrastructure spending on economic growth in
the Democratic Republic of the Congo between 1980 and 2020. This is being done
to assess the relationship between public infrastructure and economic growth in
the DRC as well as the impact that political instability has on that
relationship. According to the findings of
an econometric regression that employed estimation techniques ranging from the most basic to the most reliable,
such as the ordinary least squares
(OLS) method, fully modified least squares (FMOLS, Philips Hansen),
canonical cointegration regression (CCR, Park), and vector error correction
model (VECM), a positive relationship between infrastructure spending and
long-term economic growth has been found at the ground level. It also seems
that political unrest has an impact on infrastructure spending, which has an
impact on economic growth both directly and indirectly.