The Effect Of Telephone Connection In The Economic Growth Of Kenya
Abstract
This paper investigated the relationship between telephone connection and GDP using time
series data from Kenya for the period 1988 to 2018. Although telecommunication sector is
identified as enabler of Kenya’s vision 2030 and it has grown rapidly, empirical assessment of
the effect of various components on GDP in Kenya is lacking. This paper sought to determine
the effect of telephone connection on GDP of Kenya. An augmented Solow-Swan model was
adopted. All the variables were integrated of order one and cointegration was detected.
Therefore, ECM was used to analyze data. The speed of adjustment between the short run and
the long run equilibrium was fairly rapid at 65.4%. The estimates show that telephone connection
and GDP have a long run relationship. Thus policies that promote the telecommunications sector
would increase GDP.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
The following license files are associated with this item: