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Research on the Impact of International Trade on Economic Growth in the Democratic Republic of Congo

Journal: International Journal of Science and Research (IJSR) (Vol.10, No. 10)

Publication Date:

Authors : ; ;

Page : 977-984

Keywords : international trade; economic growth; trade openness; GDP; the Democratic Republic of the Congo;

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International trade has an important impact on the country?s economic growth. Based on 2001-2020 data, this paper analyzes the key variables and components of the Democratic Republic of Congo?s international trade and economic growth indicators, such as GDP, imports, exports, foreign direct Investment (FDI), exchange rate, etc. Using the Autoregressive Distribution Lag (ARDL) method found that international trade (exports and imports) promoted the economic growth of the Democratic Republic of the Congo in the long term but hindered development in the short term. Capital stock, population growth, and inflation have all been found to have a positive impact on GDP (economic growth) in the short and long term. In contrast, foreign direct investment was found to have a negative impact on GDP growth. Through data analysis, this paper believes that foreign funds need to flow directly into the primary sector (agriculture) and industrial sectors of the Democratic Republic of the Congo, rather than mineral mining and other service sectors. The government should strengthen local production companies to add value to raw materials before exporting. In addition, domestic consumers should be encouraged to patronize locally manufactured goods and services. This can be achieved by organizing rural trade fairs and exhibitions to bring goods made in the Democratic Republic of the Congo to thousands of households.

Last modified: 2022-02-15 18:46:47