Abstract

This study investigates the role of connectivity as a catalyst for economic growth in Malawi, a country facing persistent challenges in achieving sustained economic development. Despite significant investments in the telecommunications sector and increasing mobile phone penetration rates, the translation of these advancements into tangible economic growth remains uncertain. Using time-series data spanning 41 years from 1981 to 2021, the study employs telephone subscriptions as a measure for connectivity and annual percentage growth in GDP per capita as well as GDP as a measure of economic growth. Control variables such as population growth, inflation, and exports of goods and services are incorporated to provide a robust analytical framework. Stationarity tests and cointegration analysis are conducted to ensure the reliability of the econometric model. The findings reveal no statistically significant impact of connectivity on economic growth in Malawi in either the short or long run. This suggests that Malawi’s current telecommunications infrastructure may not yet be fully integrated into productive economic activities. Additionally, the control variables presented varied effects: inflation had a positive long-run effect on GDP per capita but a negative short-run impact, exports negatively influenced GDP per capita in the long run, and population growth showed no significant impact on economic growth. These results underscore the importance of targeted policies that enhance mobile infrastructure, promote digital literacy, and integrate telecommunications into high-impact sectors such as agriculture. By addressing these structural challenges, policymakers and stakeholders can better position Malawi to harness the potential of connectivity for long-term, inclusive economic growth.

More details

School	: School of Law, Economics and Government
Issued Date	: 2024

Download full document