Does Oil Rent Governance Impact Local Economic Development? Evidence from Congo

International Journal of Economics and Management Studies

© 2020 by SSRG - IJEMS Journal

Volume 7 Issue 2

Year of Publication : 2020

Authors : Kamitewoko Edwige

10.14445/23939125/IJEMS-V7I2P110

How to Cite?

Kamitewoko Edwige, "Does Oil Rent Governance Impact Local Economic Development? Evidence from Congo," SSRG International Journal of Economics and Management Studies, vol. 7,  no. 2, pp. 64-71, 2020. Crossref, https://doi.org/10.14445/23939125/IJEMS-V7I2P110

Abstract:

Oil revenue provides considerable financial power and a strategic position on the international scene for exporting countries. However, it remains a source of vulnerability for African oil economies in general and the Congo in particular. The discovery and exploitation of oil resources is not a guarantee of development and growth.This paper seeks to understand why the oil rent did not impact the economic development of the Congo positively. Based on the World Bank WDI and the UNDP database, the study used econometric analysis using the error correction vector method (VECM). The results revealed that oil rent significantly and negatively affects the development of Congo. The declines in growth and development in the Congo are mainly linked to excessive dependence on oil revenues, the deterioration of governance, and the spread of corruption. 

Keywords:

oil rent, Economic development, Congo.

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