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Internet Growth in Nigeria

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Internet Growth in Nigeria
TELECOMMUNICATIONS INFRASTRUCTURE AND ECONOMIC GROWTH: EVIDENCE FROM NIGERIA

BY Sheriffdeen A. TELLA, Ph.D Department of Economics, Faculty of Management Science, Olabisi Onabanjo University, PMB 2002, Ago-Iwoye Ogun State, Nigeria satellang@yahoo.com and Lloyd Ahamefule AMAGHIONYEODIWE, Ph.D* Department of Economics Faculty of the Social sciences University of the West Indies, Mona Kingston 7, Jamaica. lamaghionyeodiwe@yahoo.co.uk

and Bolaji Adesola ADESOYE Department of Economics, Faculty of Management Science, Olabisi Onabanjo University, PMB 2002, Ago-Iwoye Ogun State, Nigeria boladesoye@yahoo.com

Being a paper submitted for the UN-IDEP and AFEA joint conference on “Sector-led Growth in Africa and Implications for Development” to be held in Dakar, Senegal from November 8-11, 2007. *All correspondence to be directed to this author while copies of e-mail messages can be sent to others.

TELECOMMUNICATIONS INFRASTRUCTURE AND ECONOMIC GROWTH: EVIDENCE FROM NIGERIA

Abstract Presently, telecommunication facilities in Nigeria, first established in 1886 by the colonial administration, is undergoing very rapid change and explosive growth and it has been argued that this has economic growth potentials for the economy. As such, this study tried to investigate the simultaneous relationship between telecommunications and the economic growth in Nigeria. A system of equations that endogenize economic growth and telecom penetration as well as telecom investment was estimated. The study found that main landline and cell phone penetration had significant effects on economic growth, when we control for the effects of capital and labour. Also traditional economic factors like income and price helped explain demand for main land phones, this was not the case with respect to demand for cell phones.

1.1:

Introduction

Recently, the role of telecommunication infrastructure in enhancing economic growth has been a subject for discourse in the economic literature. Arguments are
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