Empirical Analysis of Telecommunication Infrastructure and Economic Growth in Nigeria
- Sadibo Victor
The world has become a global village with communication being an indispensable tool in the entire globalization process. The roles of Telecommunications and Information Technology (IT) have become highly essential in this process. In Nigeria, development in this vital sector has been very phenomenal and the usage of Telecommunication (GSM) has become very prominent with noticeable effect on several economic aspects. It is however instructive to investigate the effects of this latest technology on communication on the Nigerian Economy. The study examined the effects of telecommunication infrastructural development on the Nigerian economy and examined the growth implication. Secondary data was used for the study. Data collected was analyzed with econometrics technique, in the econometrics technique used, model was specified and Ordinary Least Square method (OLS) was used in estimating it. However, the findings revealed that telecoms have influenced the economy by increasing their market access and reduced distribution cost, which invariably affected the service provider cost. Also, the study revealed how GSM has enabled Nigerians to transact their businesses easily resulting in higher productivity; reduction in poverty level and prevalence through increase in income generating capacity and business expansion; improved living standard; boosted economic capacity, and stimulate the economy to achieve the desired macroeconomic policy targets.