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The Role of Telecommunication Infrastructure in the Regional Economic Growth of Africa

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Author Info
Enowbi Batuo, Michael

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Abstract

This paper deals with the effects of telecommunications on the economic growth in African countries. The telecommunications sector became a vital sector during the era of the economic reform that has been characterising the continent. We investigate empirically the role of telecommunication infrastructures on long-run economic growth in African countries, for the span of time from 1984 to 2005. We use the panel data approach with a dynamic fixed effect model, which evidences that telecommunications contribute in a major way to the economic development of the continent. It is a crucial determinant, as findings indicate a significant and positive correlation between telecommunication infrastructures and regional growth in Africa, after controlling for a number of other factors. Results also show that investment in telecommunications is subject to diminishing returns.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 12431.

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Date of creation: 22 Jun 2008
Date of revision: 07 Oct 2008
Handle: RePEc:pra:mprapa:12431

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Related research
Keywords: Infrastructure; Growth; Africa; Panel;

Find related papers by JEL classification:
H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
O55 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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  5. Wolff, Edward N, 1991. "Capital Formation and Productivity Convergence over the Long Term," American Economic Review, American Economic Association, vol. 81(3), pages 565-79, June. [Downloadable!] (restricted)
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  7. Anusua Datta, 2003. "Divestiture and Its Implications for Innovation and Productivity Growth in U.S. Telecommunications," Southern Economic Journal, Southern Economic Association, vol. 69(3), pages 644-558, January.
  8. Islam, Nazrul, 1995. "Growth Empirics: A Panel Data Approach," The Quarterly Journal of Economics, MIT Press, vol. 110(4), pages 1127-70, November. [Downloadable!] (restricted)
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