Empirical Estimation of the Impacts of Wireless Mobile Phone Technology in the Diffusivity of Technologies and Productivity Growth of the Nigeria’s Economic Sectors
Onochie Jude Dieli, G. Solomon Osho, Oluwagbemiga Ojumu, Emmanuel Opara

In 1999, the GSM (General System of Mobile Telephone) and some Networks licensing started in Nigeria but was cancelled in the early quarter of 2000. A measure of industries’ dependence on telecommunication hereafter called telecom dependence was defined to observe the influence of the share of expenditures on telecommunication out of total expenditure on intermediate inputs as stated in Jerbashian and Kochanova (2013). It has been shown that cell phones allow farmers to know the weather or input and output prices at the nearest market. Hence, the aim of the study is to determine the impacts of Wireless Mobile Phone Technology in the diffusion of technologies and productivity growth of the Nigeria’s Economic Sectors. The marginal impact of mobile phone technology is higher in high-capital-intensive industries than in low-capital-intensive industries except in Media and Services industries in Nigeria. These two industries are the base of mobile phone technology and this could be the reason why less investment in capital does not affect the diffusion impact. The empirical results confirm that the diffusion of mobile phone technology in various sectors of the economy lead to labor productivity increase. A positive relationship exists between labor productivity growth rates and mobile phone subscription rates in Nigeria. The marginal impact of telecom diffusion is also positive as shown by the derived marginal impact rates by industry. Secondly, the question: “Is diffusion effect on productivity larger in more telecom-technology dependent industrial sectors?” The answer is not in the affirmative.

Full Text: PDF     DOI: 10.15640/jeds.v7n4a3