An Empirical Study of the Telecommunication and Economic Growth in Nigeria

  • Adelakun O. Johnson Department of Economics, Adeleke University, Ede, Osun State, Nigeria
  • Adejumo I. Olabisi.I Department of Accounting, Lagos State University, Nigeria
  • Bank-Ola R. Folake Department of Economics, Adeleke University, Ede, Osun State, Nigeria
Keywords: Economic Growth; Telecommunication; Nigeria, Capital Development and Technology. Jel Code: D24; J23; J24; L96; O33; O47

Abstract

This study examines the impact of telecommunication on economic growth in Nigeria.  The study’s model is based on Solow’s augmented growth theory where labor, capital and technology are the sole determinants of economic growth. Thus, economic growth is estimated through classical least squares and fully modified ordinary least squares techniques co integration and error correction model. The finding shows that labor employed, capital stock, real investment in telecommunication and electricity supply are statistically significant to economic growth in the short run equilibrium in Nigeria. Therefore, positive economic growth is attainable when efficient and well-coordinated policies are implemented on labor productivity, price management, investment promotion and constant electricity supply. The study used GDP as a proxy of economic growth. Secondary data from NBS, CBN and NCC which were corroborated with data from ITU, WTO and World Bank Development Indicators were used for the analysis. Based on established theories, existing empirical studies and available data, six independent variables (Telecommunications revenue, telecommunications Investments, Teledensity, Agriculture, Unemployment and Electricity consumption) were regressed on the dependent variable (GDP) using Multiple Regression Analysis. The study includes labor employed, capital stock, real investment in telecommunication and electricity supply to be the repressors and real economic growth to be the regress and using a time series data from 1999 – 2018.

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Published
2021-04-03
How to Cite
Johnson, A., Olabisi.I, A., & Folake, B.-O. (2021). An Empirical Study of the Telecommunication and Economic Growth in Nigeria. Journal of Progressive Research in Social Sciences, 11(1), 7-21. Retrieved from http://scitecresearch.com/journals/index.php/jprss/article/view/2008
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Articles