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Oil and Growth in the Republic of Congo

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Author Info
Rina Bhattacharya
Dhaneshwar Ghura
Abstract

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.

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Paper provided by International Monetary Fund in its series IMF Working Papers with number 06/185.

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Length: 41 pages
Date of creation: 14 Aug 2006
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Handle: RePEc:imf:imfwpa:06/185

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Keywords: oil conflicts economic growth Oil Congo Republic of Economic growth Real effective exchange rates

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  3. Carlos Leite & Jens Weidmann, 1999. "Does Mother Nature Corrupt - Natural Resources, Corruption, and Economic Growth," IMF Working Papers 99/85, International Monetary Fund.
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  6. Xavier Sala-i-Martin & Elsa V. Artadi, 2003. "The economic tragedy of the XXth century: Growth in Africa," Discussion Papers 0203-17, Columbia University, Department of Economics. [Downloadable!]
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  7. Easterly, William & Kremer, Michael & Pritchett, Lant & Summers, Lawrence H., 1993. "Good policy or good luck?: Country growth performance and temporary shocks," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 459-483, December. [Downloadable!] (restricted)
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  8. Benoît Mercereau & Dhaneshwar Ghura, 2004. "Political Instability and Growth: The Central African Republic," IMF Working Papers 04/80, International Monetary Fund. [Downloadable!]
  9. Caselli, Francesco & Esquivel, Gerardo & Lefort, Fernando, 1996. " Reopening the Convergence Debate: A New Look at Cross-Country Growth Empirics," Journal of Economic Growth, Springer, vol. 1(3), pages 363-89, September.
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  11. Aaron Tornell & Philip R. Lane, 1999. "The Voracity Effect," American Economic Review, American Economic Association, vol. 89(1), pages 22-46, March. [Downloadable!] (restricted)
  12. Sachs, Jeffrey D & Warner, Andrew M, 1997. "Sources of Slow Growth in African Economies," Journal of African Economies, Oxford University Press, vol. 6(3), pages 335-76, October.
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  18. Luca Antonio Ricci & Ronald MacDonald, 2003. "Estimation of the Equilibrium Real Exchange Rate for South Africa," IMF Working Papers 03/44, International Monetary Fund. [Downloadable!]
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  19. Abdelhak Senhadji, 2000. "Sources of Economic Growth: An Extensive Growth Accounting Exercise," IMF Staff Papers, Palgrave Macmillan Journals, vol. 47(1), pages 6. [Downloadable!] (restricted)
  20. Kenneth Rogoff & Yu-chin Chen, 2002. "Commodity Currencies and Empirical Exchange Rate Puzzles," IMF Working Papers 02/27, International Monetary Fund.
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Daniel Leigh & Stéphane Carcillo & Mauricio Villafuerte, 2007. "Catch-Up Growth, Habits, Oil Depletion, and Fiscal Policy: Lessons from the Republic of Congo," IMF Working Papers 07/80, International Monetary Fund. [Downloadable!]
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