THE EFFECT OF INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) ON SECTORAL GROWTH

ABSTRACT

The study investigates the impact of ICT on sectorial growth in Nigeria. The study checks for unit root using Phillips-Perron test to ascertain the stationarity or non-stationarity of variables. Also, to check that long run relationship exists, the study used the Bounds test. The test revealed the existence of long-run relationship among the variables employed in the study. The Autoregressive Distributed Lag model was employed to show the relationship between the dependent and independent variables. The Durbin-Watson test was carried out to check for autocorrelation. Variables were also examined to check for serial correlation, heteroskedasticity and normality of the distribution of the model. The study reveals that ICT has a positive relationship with agricultural output in Nigeria. However, the study shows that there exist a negative relationship between ICT and manufacturing output in Nigeria in the short run and long run. Population growth has a negative relationship with agricultural output in Nigeria. Foreign direct investment has negative relationship with agricultural output in Nigeria. However, in a one year lagged period, a positive relationship is seen. There was no evidence given on the relationship between gross capital formation and agricultural output in Nigeria.