Infrastructure Spending, Political Instability and Economic Growth

Abstract

This study intends to examine the effects of political unrest and government infrastructure spending on economic growth in the Democratic Republic of the Congo between 1980 and 2020. This is being done to assess the relationship between public infrastructure and economic growth in the DRC as well as the impact that political instability has on that relationship. According to the findings of an econometric regression that employed estimation techniques ranging from the most basic to the most reliable, such as the ordinary least squares (OLS) method, fully modified least squares (FMOLS, Philips Hansen), canonical cointegration regression (CCR, Park), and vector error correction model (VECM), a positive relationship between infrastructure spending and long-term economic growth has been found at the ground level. It also seems that political unrest has an impact on infrastructure spending, which has an impact on economic growth both directly and indirectly.