Effects of Oil Rent on Economic Development in the Republic of Congo

Mbingui, Cyriaque; Owonda, Fernand; Diakabana, Modeste Ndoudi

doi:10.4236/tel.2021.113039

Cited by 3 publications

(2 citation statements)

References 19 publications

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“…The work of Sachs and Warner (1995) further reinforces the negative effect of natural resources on output growth in a panel study of 18 countries over the period 1971-89. In the work of Mbingui et al (2021) which analyzed the nexus of oil rent and economic development in Congo between 1987 and 2016, it was also observed that oil rent depresses economic performance. While affirming the negative effect of oil rent on economic growth, Ramey and Ramey (1995) attribute the negative result to price volatility of natural resources.…”

Section: Oil Rent and Economic Growthmentioning

confidence: 99%

Effect of gas flaring, oil rent and fossil fuel on economic performance: The case of Nigeria

et al. 2022

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Section: Oil Rent and Economic Growthmentioning

confidence: 99%

Effect of gas flaring, oil rent and fossil fuel on economic performance: The case of Nigeria

et al. 2022

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“…According to the study by Mbingui et al (2021), evidence from Error Correction Model (ECM) seems that the country suffers from the 'resource curse' hypothesis.…”

Section: Literature Reviewmentioning

confidence: 99%

The Relationship Between Natural Resource Rent and Economic Growth in Nigeria

Chala,

Dagim,

Belisty

et al. 2023

ijfirm

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Purpose:The current study explored the nature of the relationship between natural resources and economic growth in Nigeria, drawing on linear and nonlinear versions of the ARDL model over the period covering 1972-2019. Design/Methodology/Approach: In this study, real GDP per capita was used as a proxy variable for economic growth, and it was sourced from the World Bank's database of world development indicators. As a measure of natural resources, the study used total natural resource rent expressed as a percent of GDP. Oil is represented by oil rent as a percent of GDP. The data on these variables was collected from world development indicators of the World Bank. Findings: The models consistently show that natural resources, economic growth, trade openness, and financial development are co-integrated. Findings of the current study indicate that natural resource is growth neutral in the long run and that there is no evidence of resource curse hypothesis. The study results also reveal that the relationship between natural resources and economic growth is asymmetric, such that a negative shock to natural resources retards economic growth in the short run. In addition, the study result reveals that natural resource and economic growth reinforce each other as bidirectional causality between the variables was detected. On the other hand, minor and major shocks to natural resources fuel economic growth. Practical Implications: The study recommends that the government of Nigeria design effective strategies to avoid a negative shock to natural resources and follow economic policies that enable the country to generate large revenues from natural resource exports.

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Does resource richness help in uplifting the economic status of resource‐abundant developing countries? Evidence from Organization of Petroleum Exporting Countries using method of moments quantile regression

Zheng,

Mousa,

Mat Nawi

et al. 2024

Natural Resources Forum

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It has been clearly shown that despite having an abundance of natural resources, several resource‐rich countries have experienced slower economic growth that makes it challenging for them to use these resources as a driver of growth. The relationship between economic growth and natural resources has remained an issue of debate over the decades. However, the question of natural resources being a curse or blessing for resource‐abundant economies is still unanswered and gathered the attention of many researchers. The goal of the present study is to provide fresh insights on the matter by estimating the relationship between economic growth, oil resources and natural resources in top oil‐rich Organization of Petroleum Exporting Countries (OPEC) over the 1990–2020 period. The augmented mean group (AMG) and recently introduced methods of movements quantile regression (MMQR) are applied in the study for empirical estimation as the cross sectional dependence and slope heterogeneity are present in data series. The findings of both AMG and MMQR regressions show that oil resource richness does not contribute to uplifting the economic status of the studied countries. However, opposite findings are found for natural resources. Moreover, Granger causality analysis shows that unidirectional causal association is present between natural resources and economic growth but oil resources and economic growth have no causal relationship. It is concluded from the findings that the oil resources confirm the resource curse hypothesis, whereas natural resources confirm the resource bless hypothesis. The findings recommend the policymakers and government to enact adequate policies to connect rent‐based industries to other sectors and improvements in the financial sector to make an avenue for rents to effect economic growth. Most importantly, the government is recommended to pair these measures with anti‐corruption policies to ensure the sustainable use of the resources.

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Effects of Oil Rent on Economic Development in the Republic of Congo

Cited by 3 publications

References 19 publications

Effect of gas flaring, oil rent and fossil fuel on economic performance: The case of Nigeria

Effect of gas flaring, oil rent and fossil fuel on economic performance: The case of Nigeria

The Relationship Between Natural Resource Rent and Economic Growth in Nigeria

Does resource richness help in uplifting the economic status of resource‐abundant developing countries? Evidence from Organization of Petroleum Exporting Countries using method of moments quantile regression

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