| This dissertation combines a case study with econometric analysis in order to investigate the gate the socio-economic impact of telecommunications, information technology, and economic growth on The Gambia, West Africa. It will analyze the evolution of telecommunications and Information Technology (IT) in the country, empirically examining the relationship between gross fixed investments, telecommunications infrastructure investments, and economic growth Given that IT is such a significant driving force behind worldwide economic growth, the lack of an efficient and modern telecommunications infrastructure in most African countries hinders their economic progress, growth, and development. Clearly, then, the challenges facing these countries in their attempts to join the global information economy are considerable.; Notwithstanding the above, such an analysis of the telecommunications sector in The Gambia suggests that the sector has developed substantially in recent years. In fact, given her relatively modern telecommunications and national IT infrastructure, my findings suggest that The Gambia may well be able to leapfrog others and position herself as a major “hub” in the worldwide information economy. Major challenges still facing the country, though, include inadequate IT human capital, insufficient private and public investment in IT, minimal support and incentives for the private sector to invest in IT, and a lack of know-how regarding the strategic use of IT to improve business processes, decision-making, and economic efficiency.; An econometric approach—as opposed to the correlation studies that most studies of this type employ—is utilized in order to study the factors influencing economic growth, and especially to highlight the influence of telecommunications investments. The methods employed during the studies include the use of ordinary least squares, Granger-causalities, and a case study approach.; Using time series data to study the relationship between gross fixed investments, telecommunications infrastructure investments, and economic growth in The Gambia, the relationship between telecommunication growth and economy-wide investment was examined and a positive relationship discovered between them. In particular, it was also discovered that telecommunications investment, especially when measured by main telephone lines, is strongly related to economic growth. This result suggests that increasing investment in the telecommunications infrastructure improves the channel between aggregate investment and growth on an economy-wide scale.; This research suggests that increases in infrastructure and human capital investments, together with appropriate policies, have a significant impact on economic growth. The positive relationship found, however, is consistent with the notion that The Gambia must modernize further, and provide a yet more efficient telecommunications infrastructure, in order to pave the way for IT-led development. |
