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

Authors
Publication Date
Keywords
  • H54 - Infrastructures
  • Other Public Investment And Capital Stock
  • O47 - Measurement Of Economic Growth
  • Aggregate Productivity
  • Cross-Country Output Convergence
  • O55 - Africa
Disciplines
  • Communication
  • Economics

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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