The Role of Telecommunications Infrastructure In The Regional Economic Growth of Africa

Abstract

This paper presents empirical evidence on how telecommunications infrastructure is related to economic growth in a panel dataset covering 44 African countries for the period from 1990 to 2010. A dynamic panel data approach model is employed, which suggests that telecommunications contribute in a major way to the economic development of the continent, after controlling for a number of other factors. Furthermore, the findings also show that investment in telecommunications is subject to increasing returns, demonstrating that an increase in telecommunications investment produces further growth. Therefore, telecommunications investment and services should be encouraged in the region.

Information Sharing and Financial Sector Development in Africa

“…In addition, the conception of threshold is also consistent with the theory of critical mass that has been considerably documented in the economic development literature (see Roller & Waverman, 2001;Ashraf & Galor, 2013). A very recent application of the threshold or critical mass theory from interaction empirical specifications can be found in Batuo (2015). In essence, in this narrative, the notion of threshold is not different from: (i) critical mass for positive impacts (Roller & Waverman, 2001;Batuo, 2015); (ii) minimum requirement for enjoying of positive impacts (Cummins, 2000) and (iii) conditions for Kuznets and U shapes (Ashraf & Galor, 2013).…”

Environmental degradation, ICT and inclusive development in Sub-Saharan Africa

“…Therefore, when the computed thresholds are within statistical range, policy makers can practically increase mobile phone penetration beyond the established thresholds in order to achieve the desired effect on inclusive human development. This conception of 'threshold' is in accordance with the literature, notably: minimum conditions for desired impacts (Cummins, 2000); critical masses for appealing effects (Roller & Waverman, 2001;Batuo, 2015) and requirements for inverted U-shaped and U-shaped patterns (see Ashraf & Galor, 2013).…”

At What Levels of Financial Development Does Information Sharing Matter?

“…A recent application of the threshold or critical mass theory based on interaction variables can be found in Batuo (2015). Therefore, from the perspective of this study, the concept of threshold is not different from: (i) the minimum requirement for the reaping of positive effects (Cummins 2000); (ii) conditions for U-shape and inverted U-shape dynamics (Ashraf and Galor 2013) and (iii) critical mass for positive impacts (Roller and Waverman 2001;Batuo 2015).…”