Finding out Factors Affecting Tele-density Growth in Pakistan (1997-2011)

Abstract

The main objective of this study is to find impact of Telecom foreign direct investment (FDI), Gross Domestic Product (GDP) Per capita and cellular subscriber on Tele-density growth in Pakistan. It is well known fact that Tele-density growth has been observed in Pakistan during last few years. It happened due to privatization, market independence, increase in real GDP per capita income, increase in subscribers and flexible government policies. This is an exploratory research based on the secondary data. The research model embedded in this study is extracted from linear regression that enables us to measure the impact of explanatory variables on Tele-density growth. These variables used in this model are Telecom FDI, real per Capita GDP and Number of Cellular subscribers of Pakistan. Time series data of last 15 years i.e. from 1997 to 2011 was analyzed. The chosen model has been verified with the results, the model is overall significant with probability (F-statistic) = 0.01. On the other hand, two explanatory variables (Telecom FDI and GDP per Capita) show insignificant impact on Tele-density growth. Only one explanatory variable (cellular subscriber) has significant impact on Tele-density growth. Results can set the stage for future research, with the exception of the privatization strategy, governmental and non-governmental stakeholders agreed on all strategies.