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 309
- Downloads 9
Rethinking Attitude to Work in the Quest for Excellence: The Nehemiah’s Experience
The quest for excellence is not an end in itself, but rather dependent on other variables which include administrative and corporate attitude to work. This is important because while administrative policies will requir...
The Impact of Monetary Policy on Private Capital Formation in Nigeria
This study examined the impact of monetary policy on private capital formation in Nigeria. The central focus of this study was to find out whether monetary policy in Nigeria has brought about significant capital for Pr...
Economic Growth and Financial Development in Jordan: An ARDL Bounds Testing Approach
The objective of the present paper is to investigate the impact of financial development along with some selected macroeconomic variables on economic growth in Jordan using annual data covering the period from 1976 to...
The Economic Impact Analysis of the Euro Currency on Twelve Member Countries of the European Union
This paper examines the economic impact of the euro (€) on 12 member countries of the European Union (EU) who adopted the euro as their common currency on January 1, 2002. Prior to the period, the Maastricht Treaty (MT...
Evaluating the Nigeria’s Domestic Public Debt Stock: Implications to Economic Growth
The study investigates the empirical relationship between domestic public debt stock and its implications to the economic growth of Nigeria. Using OLS regression techniques and the time series data from 1986 – 2005, th...