Journal of
Economics and International Finance

  • Abbreviation: J. Econ. Int. Finance
  • Language: English
  • ISSN: 2006-9812
  • DOI: 10.5897/JEIF
  • Start Year: 2009
  • Published Articles: 363

Full Length Research Paper

Estimating the impacts of global system for mobile telecommunication (gsm) on income, employment and transaction cost in Nigeria

Bakare A. S.1* and Gold Kafilah ‘Lola2
  1Department of Economics, Adekunle Ajasin University, P. M. B. 001, Akungba Akoko Ondo State, Nigeria. 2Department of Economics, Kwara State College of Education, P. M. B. 1627 Ilorin, Nigeria.
Email: [email protected]

  •  Accepted: 18 October 2010
  •  Published: 31 January 2011

Abstract

 

This study investigated the impact the Global System for Mobile Telecommunication (GSM) has made on the provision of employment opportunities; income of the masses and transaction cost of various economic activities of the masses. Linear regression analytical techniques were used for data analysis. The study made use of primary data obtained from 1,000 respondents’ from 20 selected communities in Ilorin metropolis in Kwara State, Nigeria, through the administration of questionnaires. The purposive sampling method was also employed in the study with a sample unit. The outcome of the empirical investigations shows that Global System for Mobile Communication has contributed positively to the economic situations of Nigeria and has served as source of income and employment to many Nigerian youths. The study found that GSM business had reduced production cost of doing business in terms of traveling and transaction cost. The findings of the study suggested the need for Nigerian Communication Commission (NCC) and, the Federal Government of Nigeria to provide the necessary economic infrastructure (particularly power supply) to the GSM operators in order for them to deliver efficient services and to be able to reduce their charges. The government should also create atmosphere for the expansion of tele-density and directly make telephone communications accessible. To achieve this goal, more licenses should be given to GSM operators in order to allow for healthy competition among the GSM operators.

 

Key words: Global system for mobile communication, tele-density, economic growth, deregulation Zain, MTN and M-tel, Globalcom, Etisalat, GSM connected lines.