Determinants of Economic growth in CEMAC Countries: Case of Congo
Idrys Fransmel OKOMBI

This article analyzes the determinants of economic growth in the Congo during the period 1995-2016. By using the Vector Error Correction Model (VECM), the results of this study reveal two categories of variables with nuanced effects. The first category consists of gross fixed capital formation, public spending and the degree of fiscal freedom, which have a positive impact on economic growth; the second category consists of the price of oil and the overall index of political rights, which have a negative effect on growth. Thus, to put the Congolese economy on a path of sustainable growth, the Congolese Government must reduce the heavy dependence of the Congolese economy on oil resources by applying the policies of transformation of the economic structure. Similarly, the Congolese Government must improve the investment climate, by increasing productive public spending, reducing the tax burden and promoting democracy.

Full Text: PDF     DOI: 10.15640/jeds.v5n4a8