THE EFFECT OF PRIVATIZATION ON THE ECONOMY; CASE STUDY TELECOMMUNICATIONS INDUSTRIES

ABSTRACT

The study investigated the effect of privatization on the Nigerian economy; case study telecommunications industries for the period 1997 to 2016. An empirical investigation was carried out using time series data on growh rate of gross domestic product, mobile telephone lines, fixed telephone lines, industrialization and interest rate, . Data were extracted from relevant publications of the Central Bank of Nigeria (CBN) and National Bureau of Statistics (NBS). The estimation techniques employed in the study include Augmented Dickey Fuller (ADF) test, Cointegration test, Jarque-Bera Normality test, unit root test, and Error Correction Model (ECM). All variables were stationary at the first difference and from the study; it shows that the coefficient of mobile telephone lines and industrialization is positive. This implies that Mobile Telephone lines has a positive and significant impact on the growth of the Nigerian economy. Also, the study shows that there is a statistically significant relationship between industrialization economic growth in Nigeria The study recommends that  government must ensure that the regulatory environment and competition policies must be part of the process of Privatization. Accordingly, government must repeal all decrees/laws that inhibit competition and must pass laws that protect investors.