Oil and Growth in the Republic of Congo
August 1, 2006
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Summary
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.
Subject: Natural resources, Oil, Oil prices, Oil sector, Real effective exchange rates
Keywords: government, transmission mechanism, WP
Pages:
41
Volume:
2006
DOI:
Issue:
185
Series:
Working Paper No. 2006/185
Stock No:
WPIEA2006185
ISBN:
9781451864458
ISSN:
1018-5941
