THE ROLE OF INFRASTRUCTURE DEVELOPMENT ON NATIONAL ECONOMIC GROWTH: A CASE STUDY OF THE TELECOMMUNICATION SECTOR IN NIGERIA (2000-1-2010-4)

ABSTRACT
The study examines the role of infrastructure development in national economic
growth. A model was specified for the purpose and secondary quarterly data was
collected for the period 2000-2010. The objective of this research was primarily to
investigate the level of telecom infrastructure development on the Nigeria
economy. Statistical technique of ordinary least square (OLS ) was employed for
the estimation. Our result shows that developments in telecommunications sector
provided by teledensity have positive and significant impact on economic growth
in Nigeria. We recommend that increased infrastructure development in the
telecommunications sector, and greater deregulation for competition among
operations will bring about sustained economic growth.

CHAPTER ONE
1.0. INTRODUCTION
1.1 BACKGROUND OF STUDY
It takes little analysis to see that infrastructure plays a major role in the economy of
a country, whether developing or developed. The need for good infrastructure
management is of great importance to the economics of countries all over the
world and the various sectors of the economy need to be understood. The world is
fast becoming a global village and a necessary tool for this process is
communication of which telecommunication is a key elements. Development in the
telecommunication industry all over the world is very rapid as one innovation
replaces another in a matter of weeks.
Nigeria is part of this race for rapid developments, as the years of economic
reversal via mismanagement have had adverse effects ton its rate of growth and
development. The Nigeria telecommunications sector was grossly underdeveloped
before the sector was deregulated under the military regime in 1992 and placed
under the jurisdiction of the Nigeria Communication Commission (NCC) since
then, the NCC has issued various licenses to private telephone operators. These
licenses allow private telephone operators (PTO) to roll out both fixed wireless
telephone lines and analog mobile phones. The return of democracy in 1990
however paved the way for the granting of GSM licenses to three service
providers, MTN, ECONET (which is now AIRTEL) and NITEL Plc in 2001 with
GLOBACOM joining in 2003. Telecommunication is a major driver of any
economy infrastructure which is therefore regarded as a vital instrument in
ensuring economic development. Attention this work would be focused on this
area of Endeavour, as it appears to be one of the most neglected areas of economic
development goals in most countries today.

0/5 (0 Reviews)
Read Previous

THE ROLE OF FINANCIAL INSTITUTIONS IN AGRICULTURAL DEVELOPMENT (1990-2010) A CASE STUDY OF NIGERIA AGRICULTURAL COOPERATIVE AND RURAL DEVELOPMENT BANK

Read Next

THE USE OF COMPUTER IN RECORDING ACCOUNTING INFORMATION, PROBLEMS AND PROSPECTS (A STUDY OF BENDEL FEEDS AND FLOUR MILL, EWU, EDO STATE)

Need Help? Chat with us