African Retailing Studies | 06 July 2008
ICT Infrastructure Development and Economic Growth Nexus in Ethiopia: A Scholarly Perspective
T, s, e, g, a, y, e, A, b, e, r, a, ,, M, e, r, s, h, a, G, e, b, r, e, a, b
Abstract
The rapid development of Information and Communication Technology (ICT) infrastructure in Ethiopia has been a focal point for economic growth studies. The research employs ordinary least squares (OLS) regression analysis to estimate the impact of ICT infrastructure on GDP growth. The study also incorporates robust standard errors for inference. Results indicate a significant positive correlation between increased investment in ICT infrastructure and economic growth, with a coefficient of 0.85 indicating that every $1 increase in ICT investment leads to an estimated 0.85% growth in GDP. The study concludes that enhancing ICT infrastructure is crucial for fostering sustainable economic development in Ethiopia. Government and private sector stakeholders are encouraged to prioritise investments in ICT infrastructure as a key driver of economic prosperity. ICT Infrastructure, Economic Growth, Ordinary Least Squares (OLS), GDP Growth Model estimation used $\hat{\theta}=argmin<em>{\theta}\sum</em>i\ell(y<em>i,f</em>\theta(x<em>i))+\lambda\lVert\theta\rVert</em>2^2$, with performance evaluated using out-of-sample error.