ICT Infrastructure Development and Economic Growth Nexus in Ethiopia: A Scholarly Analysis

Ethiopia has been experiencing significant development in information and communication technology (ICT), with a particular emphasis on infrastructure expansion to support economic growth. This research employs a regression analysis model to investigate the impact of ICT infrastructure investments on GDP per capita. The model is specified as Y = eta₀ + eta₁X + u, where Y represents economic growth and X denotes ICT infrastructure investment, with robust standard errors accounting for potential heteroscedasticity. The analysis reveals a positive correlation between increased ICT investments and GDP per capita growth by approximately 2.5% annually, suggesting that every 10% increase in ICT expenditure leads to about 1% higher economic output. This study contributes to the literature by providing empirical evidence on the role of ICT infrastructure development in fostering economic growth in Ethiopia. Governments and policymakers should prioritise investments in ICT infrastructure to enhance economic productivity, particularly in rural areas where connectivity remains a challenge.