The Impact of Telecommunication Expenditure on Economic Growth in Nigeria

Abstract

This paper examined the impact of telecommunication expenditure on economic growth in Nigeria using time series data from 1970 to 2010. In conducting the analysis, the unit root tests and co-integration tests were estimated using the Augmented Dickey-Fuller technique. The estimated results show that telecommunication, Foreign Direct Investment (FDI) and the degree of trade openness have positive impact on economic growth in Nigeria while unemployment has negative impact. The unit root test shows that real GDP and the degree of trade openness are integrated of order one, I(1) while telecommunication is and the FDI are integrated of order zero.

Key words: Economic Growth, Telecommunication, unemployment and Trade openness, Nigeria