TITLE:
Impact of Gas Production, Utilization and Flaring on Economic Growth: Evidence from the Republic of Congo
AUTHORS:
Prince Valdano Itoua, Durell Esperance Ndinga Manguet, Gilhaimé Mouanda-Mouanda
KEYWORDS:
Gas, Economic Growth, Time Series, Cointegration Test, Unit Root Test, Republic of Congo
JOURNAL NAME:
Open Journal of Business and Management,
Vol.9 No.3,
May
31,
2021
ABSTRACT: The
purpose of this study is to investigate the impact of the gas production, gas use and gas flaring on economic growth of the
Republic of Congo during the period 2006-2019. The results of the unit root
test reveal that the bulk of variables
are stationary at level and therefore
integrated of order zero, however, labor input which is stationary at first difference and integrated of order
one. The test of Johansen cointegration shows that all time series are cointegrated and have a long-run
equilibrium relationship. We also
perform the Granger-causality test which proves that only gas production and
gas utilization cause economic growth in our study. The OLS regressions suggest
gas production impacts adversely and significantly GDP while gas utilization significantly stimulates
GDP.