Author(s)

Cyriaque Mbingui, Fernand Owonda, Modeste Ndoudi Diakabana

Faculty of Economics, Laboratory of Research and Economic and Social Studies, Marien Ngouabi University, Brazzaville, Congo.

The objective of this study is to analyze the effects of oil rent on economic development in Congo over a period from 1987 to 2016. Following the estimation of the Vector Error Correction Model (VECM), the result shows that the dependence on oil rent negatively affects the development of Congo. The poor performance of growth and development in the Congo is mainly linked to the deterioration of governance and the generalization of corruption. This result allows us to formulate an economic policy implication that focuses on the sustainable management of oil resources with future generations in mind and by investing in the diversification of the country’s economic activities. This would help eradicate poverty and improve the standard of living of the population.

Oil Rent, Economic Development, Resource Curse, VECM

Mbingui, C. , Owonda, F. and Diakabana, M. (2021) Effects of Oil Rent on Economic Development in the Republic of Congo. Theoretical Economics Letters, 11, 587-602. doi: 10.4236/tel.2021.113039.