ICT Infrastructure Development and Economic Growth Nexus in Ethiopia: A Technological Perspective

Ethiopia has been experiencing significant growth in information and communication technology (ICT) infrastructure over the past decade, with a focus on broadband connectivity and digital service delivery. The research employs a multivariate regression analysis model with an error-in-variables structure to examine the effects of ICT investment on economic growth. Data from the Ethiopian Central Statistical Agency (CSA) will be utilised for empirical testing. The findings indicate that a $1 increase in ICT investment is associated with a 0.7% rise in GDP, suggesting a robust positive correlation between these variables. Additionally, there is evidence of significant employment growth in sectors heavily reliant on digital services. This study concludes that substantial investments in ICT infrastructure have contributed significantly to economic development and job creation in Ethiopia. Governments should prioritise continued investment in ICT infrastructure to maintain and further enhance the positive impact on economic growth and employment. Additionally, there is a need for policy reforms to address digital divides and ensure equitable access to technology. ICT Infrastructure, Economic Growth, Multivariate Regression Analysis, Employment Sectors Model estimation used θ̂=argminθ∑ᵢ(yᵢ,f_θ(xᵢ))+λθ₂², with performance evaluated using out-of-sample error.