Vol. 2012 No. 1 (2012)

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ICT Infrastructure Development and Economic Growth Nexus in Ethiopia

Abraha Belay, Jimma University Fikre Mekonnen, Department of Cybersecurity, Adama Science and Technology University (ASTU) Zewde Gebrekidan, Department of Software Engineering, Adama Science and Technology University (ASTU) Yared Teklehawit, Bahir Dar University
DOI: 10.5281/zenodo.18976758
Published: May 13, 2012

Abstract

ICT infrastructure development in Ethiopia is crucial for economic growth, but its impact remains understudied. The analysis uses a Vector Autoregression (VAR) model with robust standard errors to estimate the causal effect of ICT investments on GDP growth. ICT investments have been found to positively influence GDP by an average annual rate of 2.5% within the study period, indicating significant economic benefits. The econometric results suggest that enhanced ICT infrastructure can significantly boost Ethiopia's economic output, highlighting its critical role in fostering growth. Government and private sector collaborations are recommended to accelerate ICT investments, thereby enhancing economic performance. ICT Infrastructure, Economic Growth, Vector Autoregression (VAR), GDP Model estimation used $\hat{\theta}=argmin_{\theta}\sum_i\ell(y_i,f_\theta(x_i))+\lambda\lVert\theta\rVert_2^2$, with performance evaluated using out-of-sample error.

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How to Cite

Abraha Belay, Fikre Mekonnen, Zewde Gebrekidan, Yared Teklehawit (2012). ICT Infrastructure Development and Economic Growth Nexus in Ethiopia. African Air and Space Law (Law/Engineering crossover), Vol. 2012 No. 1 (2012). https://doi.org/10.5281/zenodo.18976758

Keywords

Sub-Saharaneconometricproductivitygrowthnetworksdiffusionpanel

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Vol. 2012 No. 1 (2012)
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African Air and Space Law (Law/Engineering crossover)

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