Browsing by Author "Menber, Abeje"

Now showing 1 - 1 of 1
  • No Thumbnail Available
    Item
    The Impact of Mobile Telecom Penetration on Economic Growth: A Case Study of Ethiopia
    (A.A.U, 2020-06) Menber, Abeje; Fantu, Guta (PhD)
    This paper examined the impact of mobile phone penetration rate on economic growth in Ethiopia over the period 1999Q1 to 2019Q1, with a quarterly data of 81 observations. The long-run and short-run parameters were estimated using autoregressive distributed lag (ARDL) bounds testing approach for cointegration analysis. Granger Causality Analysis was also done to determine the causality between mobile phone penetration and economic growth. Empirical finding indicate that Mobile phone penetration rate is significant in long run and insignificant in the short run and has positive impact on real GDP per capita both in the short run and long run. A 1% increase in Mobile phone penetration rate increases real GDP per capita by 0.165% and 0.013% in the long run and short run, respectively. The overall result showed that mobile phone penetration rate has a positive impact on economic growth both in the short run and long run. The magnitude of the ECT coefficient is - 0.192228 implying about 19.2% of the disequilibrium quarterly converge towards long run equilibrium in the following Quarter. The Tado-Yamomoto Granger causality test result is also consistent with the co-integration result indicating bi- directional causality between mobile phone penetration rate and economic growth in Ethiopia for the period under study