An exploratory model of inter-country Internet diffusion

A model was developed and estimated to explain global inter-country differences in Internet usage rates (IURs), as measured by users per capita. Per capita income was the most important determinant. The relationship appears to be non-linear, with income differences having greater impacts on IUR at lower than higher levels. Two other important determinants were the openness of a society and infrastructure, using telephone and personal computer densities as proxies. To explore the possibility of Non-Economic Factors, other than openness, six regional divisions were used. The results were insignificant, perhaps due to heterogeneity with regard to Non-Economic Factors within these regions and large inter-regional differences in income, infrastructure, and openness. If true, there may be greater potential for exploring the impacts of Non-Economic Factors within areas more homogeneous in terms of the other variables. To demonstrate this, it was shown that, controlling for both income and infrastructure, there are significant differences in IUR across 16 European nations associated with religious affiliations.