Oil and Growth in the Republic of Congo

Author/Editor:

Dhaneshwar Ghura ; Rina Bhattacharya

Publication Date:

August 1, 2006

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

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.

Series:

Working Paper No. 2006/185

Subject:

Natural resources Oil Oil prices Oil sector Real effective exchange rates

English

Publication Date:

August 1, 2006

ISBN/ISSN:

9781451864458/1018-5941

Stock No:

WPIEA2006185

Pages:

41

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