Impact of Foreign Direct Investment in Telecommunication on Economic Growth in Nigeria
Christopher Obute, Victor Ushahemba Ijirshar &Ashifa Tersugh
Department of Economics
Benue State University, Makurdi Nigeria
ABSTRACT
This study examined the impact of foreign direct investment in telecommunication on economic growth in Nigeria covering the period 1981 to 2014. Econometrical techniques were employed for the analysis of data. The Augmented Dickey Fuller unit root test showed that all variables were integrated at first difference. The study found that there is positive and significant impact of foreign direct investment in telecommunication on economic growth in Nigeria in the long run only. The study also found that an initial deviation from equilibrium can corrects itself back to long run equilibrium at 71% yearly. The diagnostic test revealed that residuals were normally distributed, and both serial correlation and heteroskedastrcity were found absent in the model. The study therefore recommended that the Nigerian government should aggressively initiate policies to change the expenditure pattern in the country that would stimulate the economy towards rapid and sustained economic growth path, and create enabling environment in order to attract more of foreign investments in the country through tax incentives, development of infrastructural facilities, and improvement of the institutional qualities and capabilities of the state. More so, training of human capital to augment increasing FDI in Telecommunication in the country to achieve economic growth is imperative.
Keywords: Economic Growth, Foreign Direct Investment, Government Expenditure and Telecommunications
JEL Classification: O47, E62, L96
