Browsing by Author "Lebenie, Mekdes"

Now showing 1 - 1 of 1
  • No Thumbnail Available
    Item
    Presented in Partial Fulfillment of the Requirements for the Degree of Master of Arts in African Studies (Human and Economic Development in Africa)
    (Addis Ababa University, 2019-06) Lebenie, Mekdes; Gebreselassie, Dr. Kidist
    The purpose of this study is to analyze the effect of telecom sector liberalization on economic growth of Kenya using a time series data from 1988 to 2017. Empirical analysis has been performed using least square method of estimation to examine the effect of telecom liberalization on economic growth of Kenya. The variables included in the model are per capital real GDP as a dependent variable, telecom investment as key indicator for liberalization, FDI inflows, Gross fixed capital formation, Export of goods and services, Labor force and Lagged value of per capita real GDP are controlled variables. The study also examined the existence of structural change in Kenyan economy due to telecom liberalization using a linear regression model with Chow Test to determine the date(s) at which there was a statistically significant structural break. The results of the structural change indicated that the economy of Kenya has been subject to a structural break during the sample period. Given the test result proved the existence of structural change, the study introduce time variable to control for structural break and other controlled variable in order to examine the effect of telecom reform on per capita GDP growth of Kenya. Therefore, the results indicate that telecom reform has brought significant long run effect on per capita GDP of Kenya. Key words; Economic growth; Kenya; Liberalization; Telecom investment