THE IMPACT OF INFORMATION AND COMMUNICATION TECHNOLOGY ON THE ECONOMIC GROWTH IN NIGERIA

0
38

TABLE OF CONTENTS

Title Page                                                                                                           i

Certification                                                                                                       ii Dedication                                                                                                                           iii

Acknowledgement                                                                                                iv

Table of Contents                                                                                      v

Abstract                                                                                                            vi

        CHAPTER ONE

  1. Introduction                                                                                                 1

1.1       Background to the Study                                                                        1

1.2       Statement of the Problem                                                                           4

1.3       Research Questions                                                                                5

1.4       Objectives of the Study                                                                        5

1.5       Research Hypothesis                                                                               5

1.6       Justification to the Study                                                                      5

1.7       Outline of the Study                                                                            6

CHAPTER TWO: Literature Review

2.0       Introduction                                                                                              7

2.2.1   The concept of Information and Communication Technology  7

2.3       Theoretical Framework                                                                 8

  • Theory of Economic Growth                                                               9
  • Robert Solow Theory of Growth                                             10
  • Paul Romer Theory of Economic Growth                                            10
  • The Impact of ICT on Sustainable Socio-Economic Growth     12
  • Impact of Information and Communication Technology             13
  • Vocational Opportunities in ICT                                                    13
  • Economic Benefits of ICT Policies                                                  14
  • The Relationship                                                                      14
  • Social Benefit of ICT Policy                                                  15

2.5       Empirical Review                                                                                                        16

CHAPTER TWO: Research Methodology

3.1       Introduction                                                                                         18

3.2       Model Specification                                                                       18

3.3       Model Estimation                                                                    19

3.4       Model Evaluation                                                                       19

3.4.1    Apriori Criteria                                                                             19

3.4.2    Econometrics Criteria                                                                    19

3.4.2.1  Coefficient of determination (R2)                                                    20

3.4.2.2   Adjusted R2                                                                                                    20

3.4.2.3    F-statistics test                                                                                      20

3.4.2.4    Durbin Watson Test                                                                  20

3.4.3       Statistical Criteria (First Order Test)                                       20

3.5          Sources of Data                                                                          21

CHAPTER FOUR: Presentation and Analysis of Results

4.1       Introduction                                                                                            22

4.2       Presentation of results                                                                               22

4.3       Interpretation and Discussion of Results                                          23

4.3       The R-squared                                                                                    24

4.4       Adjusted R-squared                                                                                24

4.5       The F-statistic                                                                                    24

4.6       The Durbin-Watson                                                                         24

CHAPTER FIVE: Summary, Conclusion and Recommendations

5.1     Summary                                                                                              25

5.2 Conclusions                                                                                           25

5.3 Recommendations                                                                                      26

      Appendix 1                                                                                             27

      References                                                                                               28

Abstract

In recent years, progress in information and communication technology (ICT) has caused many structural changes such as reorganizing of economics, globalization, and trade extension, which leads to capital flows and enhancing information availability. Moreover, ICT plays a significant role in development of each economic sector, especially during liberalization process. Growth economists predict that economic growth is driven by investments in ICT. This paper examines the impact of Information and Communication Technology (ICT) use on economic growth using the ordinary least square estimator within the framework of a dynamic panel data approach and applies it to 159 countries over the period 1981 to 2015. The results indicate that there is a positive relationship between growth rate of real GDP per capita and ICT use index (as measured major house hold consumption government expenditure on telecom exchange rate and investment in telecommunication). I Have found a positive relationship between ICT and ecomic growth   This implies that if these countries seek to enhance their economic growth, they need to implement specific policies that facilitate ICT use.

CHAPTER ONE

  • INTRODUCTION   

This is the chapter on introduction.It states the background to the study, statement of problem, research question and objectives. It covers the project hypothesis and justification as well the outline of the study.

1.1       BACKGROUND TO THE STUDY

Information has always played a very important part in human life. However, in the mid-20th century, the role of information increased immeasurably as a result of social progress and the vigorous development in science and technology. Similarly, Trostnikov (1970) noted that, rapid expansion of a mass of diversified information is occurring, which has received the name “information explosion”. As a result, the need has arisen for a scientific approach to information and for elucidation of its most characteristic properties which has led to two principal changes in interpretation of the concept of information. The pace of change brought by new technologies has had a significant effect on the way people live, work, and play worldwide.

The world has become a global village with telecommunication being an indispensabletool in the entire process of globalization. However, it is not in dispute that Telecommunicationsand Information technology (IT) play essential roles in this process. This is obviously whydevelopment in this vital sector over the years has been phenomenal all over the world. In fact,this is why emerging trends in socio – economic growth shows high premium being placed onInformation and Communication Technology (ICT), by nations, organizations and homes.

Nigeria, fortunately, has not been left out of this race for rapid development in the telecommunication industry. Unlike in the past, governments consider telecommunications service to be so vital tonational interest and economic development that it was placed directly under their control in mostcountries until recently, when deregulation and competition were introduced (Lee, 2003).

The existing literatures on growth and development studies have shown that Information and communication technology (ICT) plays considerable role in the economy of a country. Put differently, one of the major drivers of economic growth and development is information and communication technology. Singh (2006) noted that ICT is a powerful tool when used in the right way as part of overall development strategy. In the same vein, Boating (2007) opined that ICT may not be a panacea to the world’s problems but it can be a powerful tool to facilitate and enable affordable solutions to basic human developmental problems. It is widely accepted by intellectuals that ICT has become an integral part of the social, economic and political paraphernalia of social interactions; hence countries all over the world are taking to ICT for various developmental initiatives (Moghaddamand Khatoon-Abadi 2013; Gnaniah et.al 2004).

As such, it can be argued that in the 21 century, the role of ICT in transforming the world into a better place for all (or at least for many) cannot be overemphasized.In fact, ICT has become the buzz word in academia, government, business, economy and many other social purview of human society, especially in the areas of sustainable development. ICT has over the last decade grown and became the driving force responsible for monumental changes and innovative development in the world.

Posu (2006) stated that the industrial revolution in Europe and America have been anchored on the technological breakthroughs. Similarly, during the late 1999s, Harchaoui (2002) noted that ICT was the largest contributor to the growth within capital services for both Canada and the United States of America. Nigeria is the largest economy in Africa after South Africa and Egypt. Nigeria is also a top oil producer with population of about 170 million people.

THE IMPACT OF INFORMATION AND COMMUNICATION TECHNOLOGY ON THE ECONOMIC GROWTH IN NIGERIA