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Spatial Effects in Website Adoption by Firms in European Regions

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  • MARGARITA BILLON
  • ROBERTO EZCURRA
  • FERNANDO LERA‐LÓPEZ

Abstract

The purpose of this paper is to provide empirical evidence on the neighboring effects of Internet adoption as measured by the percentage of firms with their own website in the European regions. This is the first study that explicitly analyzes the role played by spatial effects to explain website adoption for the European case. A set of instruments and techniques commonly used in the spatial econometrics framework is employed to test the hypothesis that proximity matters when explaining Internet adoption by firms. Results show that firms in physically adjacent regions register a similar degree of Internet adoption, confirming the presence in this context of positive spatial dependence. Nevertheless, the spatial effects detected are mainly constrained by national borders. Gross domestic product (GDP) per capita, population density, sectoral composition, and education are positively related to geographic distribution of Internet adoption in the enlarged European Union. In addition, regional disparities in Internet adoption were found to be less important than territorial inequalities in GDP per capita.

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  • Margarita Billon & Roberto Ezcurra & Fernando Lera‐López, 2009. "Spatial Effects in Website Adoption by Firms in European Regions," Growth and Change, Wiley Blackwell, vol. 40(1), pages 54-84, March.
    • Handle: RePEc:bla:growch:v:40:y:2009:i:1:p:54-84
    DOI: 10.1111/j.1468-2257.2008.00461.x
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    5. Margarita Billon & Rocio Marco & Fernando Lera-Lopez, 2017. "Innovation and ICT use in the EU: an analysis of regional drivers," Empirical Economics, Springer, vol. 53(3), pages 1083-1108, November.
    6. Myovella, Godwin & Karacuka, Mehmet & Haucap, Justus, 2021. "Determinants of digitalization and digital divide in Sub-Saharan African economies: A spatial Durbin analysis," Telecommunications Policy, Elsevier, vol. 45(10).
    7. Frederico Cruz-Jesus & Tiago Oliveira & Fernando Bacao & Zahir Irani, 2017. "Assessing the pattern between economic and digital development of countries," Information Systems Frontiers, Springer, vol. 19(4), pages 835-854, August.
    8. Jung, Juan, 2014. "Regional inequalities in the impact of broadband on productivity: Evidence from Brazil," MPRA Paper 56177, University Library of Munich, Germany.
    9. Szeles, Monica Răileanu, 2018. "New insights from a multilevel approach to the regional digital divide in the European Union," Telecommunications Policy, Elsevier, vol. 42(6), pages 452-463.
    10. Lutz, Sebastian Uljas, 2019. "The European digital single market strategy: Local indicators of spatial association 2011–2016," Telecommunications Policy, Elsevier, vol. 43(5), pages 393-410.
    11. Frederico Cruz-Jesus & Tiago Oliveira & Fernando Bacao & Zahir Irani, 0. "Assessing the pattern between economic and digital development of countries," Information Systems Frontiers, Springer, vol. 0, pages 1-20.
    12. Eva Ventura & Albert Satorra, 2014. "A multiple indicator model for panel data: an application to ICT area-level variation," Economics Working Papers 1419, Department of Economics and Business, Universitat Pompeu Fabra.
    13. Ventura, Eva & Satorra, Albert, 2015. "A multiple indicator model for panel data: An application to ICT area-level variation," Telecommunications Policy, Elsevier, vol. 39(10), pages 830-847.
    14. Ruiz-Rodríguez, Francisca & Lucendo-Monedero, Angel Luis & González-Relaño, Reyes, 2018. "Measurement and characterisation of the Digital Divide of Spanish regions at enterprise level. A comparative analysis with the European context," Telecommunications Policy, Elsevier, vol. 42(3), pages 187-211.
    15. Margarita Billon & Fernando Lera-Lopez & Rocio Marco, 2016. "ICT use by households and firms in the EU: links and determinants from a multivariate perspective," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(4), pages 629-654, November.
    16. Ventura, Eva & Satorra, Albert, 2015. "A multiple indicator model for panel data: an application to ICT area-level variation," 26th European Regional ITS Conference, Madrid 2015 127191, International Telecommunications Society (ITS).

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