An Assessment of the Effect of Telecommunication Investment on Economic Growth in West Africa
Journal Title: Journal of Empirical Economics - Year 2016, Vol 5, Issue 3
Abstract
The study is an empirical assessment of the effect of telecommunication investment on economic growth in West Africa covering the period 2001-2013, and using panel data from various secondary sources. The generalized method of moments (GMM) model, and granger causality tests were applied in the study. The dependent variable is real per capita GDP while the independent variables are telecommunication investment, lag value of real per capita GDP, gross fixed investment and Foreign Direct Investment (FDI). The findings based on the adopted GMM model revealed that telecommunication and foreign direct investments have positive but not significant effect on economic growth while gross fixed investment and lag value of GDP are significantly related to growth. The Granger causality results showed bidirectional relationship between GDP and telecommunication investment while unidirectional causality runs from investment to GDP, and no causality exists between GDP and FDI. The study therefore recommended among others, the need for sustenance and enhancement of liberalization policy to encourage more investment in the telecommunication sector, and strengthening of reform aimed at deregulation and privatization of the sector, and improving access to telecommunication services in the rural areas with sound regulatory institution to enhance business environment and service delivery.
Authors and Affiliations
Nazifi Abdullahi Darma, Muhammad Ali
Keywords
Related Articles
- EP ID EP27429
- DOI -
- Views 343
- Downloads 9
Looking Into The Future: Which Economy Will Be Performing Better Circa 2060, India Or China?
Despite the politicization of Zimbabwe‟s Look East Policy- which apparently has been also adopted by a number of African countries, this policy is bound to bring a lot of economic gains for Zimbabwe and the continent a...
Decentralized Governance from the Perspective of Internally Generated Revenue for Local Development Finance: Analysis and Practice
The local governance in Ghana has been practised using different models over the years. These models were introduced by the colonial government which was highly centralised. The dynamics of local government in Ghana ch...
Investigation of Relationship between Stock Prices, Interest Rate and Exchange Rate Fluctuations
One of the most important matters that has always been considered in the stock market is analysis of the effects of economic condition on stock price changes, and these changes are the prime cause for fluctuations of s...
Financial Deepening and Economic Growth in 7 Sub-Saharan Africa: An Application of System GMM Panel Analysis
This paper empirically explored the link between the level of financial development and economic growth in 7 Sub-Saharan African countries for the period of 1981to2013. The study employed both static and dynamic panel...
Combating Insecurity in Nigeria: An Integrated Conflict Management Approach
The paper examines combating Insecurity in Nigeria: “An Integrated Conflict Management Approach’’. It conceptualizes insecurity as the worthlessness of life and property because of its unsafe or unprotected nature whic...