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

Chali Nondo () and Mulugeta Kahsai ()
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Chali Nondo: Department of Resource Management
Mulugeta Kahsai: Regional Research Institute, West Virginia University

Working Papers from 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.

Keywords: telecommunications; economic growth; simultaneous growth equilibrium model (search for similar items in EconPapers)
JEL-codes: C33 O47 O57 R11 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2011-04
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Persistent link: https://EconPapers.repec.org/RePEc:rri:wpaper:2011wp04

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