Journal of Innovation in Business and Economics
Vol. 8 No. 01 (2024): Journal of Innovation in Business and Economics

Are abundant natural resources in the Democratic Republic of the Congo a blessing or curse?

Olamilekan Abdulwahab, Lawal (Unknown)
Arvian Firmansyah , Egi (Unknown)



Article Info

Publish Date
19 Jun 2024

Abstract

This study investigates how natural resources and institutional quality (IQ) impact the economic growth of the Democratic Republic of the Congo (DRC). Based on data annually from 1985 to 2022 using ordinary least squares regression the findings highlight that human capital development, inflation, foreign direct investment (FDI), oil rents, forest rents, political instability, conflict, and corruption significantly hinder the country's economic progress. This suggests that despite its abundant natural resources, the DRC faces more economic challenges than benefits from them. As a result, the study recommends stringent monitoring and oversight of mineral revenue management, establishment of stable political conditions, and aggressive measures to combat corruption and conflict. These actions are crucial in transforming the current curse of natural resources into a potential blessing for the country.

Copyrights © 2024






Journal Info

Abbrev

jibe

Publisher

Subject

Economics, Econometrics & Finance

Description

The Journal of Innovation in Business and Economics (JIBE) is published by the Department of Economics and Business at University of Muhammadiyah Malang in 2017. Previously this journal was known as Jurnal Media Ekonomi that was initially published in 2000. In 2011 until 2016, this journal was ...