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Telecommunications Investment and Economic Development: Evidence from a Panel of Sub-Saharan Africa (SSA)

Author

Listed:
  • Chali Nondo

    (Department of Resource Management)

  • Mulugeta Kahsai

    (Regional Research Institute, West Virginia University)

Abstract

The objective of this paper is to study the role of government effectiveness, institutional and political factors in aggregate output and telecommunications penetration in SSA countries. The contribution of these factors in aggregate output and telecommunications evolution is examined using a framework that accounts for the endogeneity and interactions between aggregate output and telephone penetration rates. Results from the study indicate that government effectiveness is an important determinant for aggregate output. Another supplemental finding is that the incessant political upheavals in SSA countries have a detrimental effect on aggregate output. From this, we endorse that SSA countries should design and implement efficient institutional frameworks and mechanisms that will expand telecommunications network infrastructure in both rural and urban areas and thus spur growth and development.

Suggested Citation

  • Chali Nondo & Mulugeta Kahsai, 2011. "Telecommunications Investment and Economic Development: Evidence from a Panel of Sub-Saharan Africa (SSA)," Working Papers Working Paper 2011-04, Regional Research Institute, West Virginia University.
    • Handle: RePEc:rri:wpaper:2011wp04
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    File URL: https://researchrepository.wvu.edu/rri_pubs/59/
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    telecommunications; economic growth; simultaneous growth equilibrium model;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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