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Internet diffusion in China: A dynamic panel data analysis

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  • Li, Raymond
  • Shiu, Alice

Abstract

This paper investigates the key factors influencing the rate of Internet penetration in China. Given the significant differences in Internet penetration rates across different regions in China, panel data for 31 Chinese provinces over the period 2003–2009 are analyzed in a dynamic modelling framework to shed light on the main factors influencing the Internet penetration rate in each region and obtain implications for the digital divide in Internet penetration for China. The most innovative finding is the presence of significant network effect in Internet diffusion. While income is a significant and very important determinant of Internet adoption in each region, literacy and telecommunication infrastructure are also significant determinants of Internet adoption in the less developed western region.

Suggested Citation

  • Li, Raymond & Shiu, Alice, 2012. "Internet diffusion in China: A dynamic panel data analysis," Telecommunications Policy, Elsevier, vol. 36(10), pages 872-887.
  • Handle: RePEc:eee:telpol:v:36:y:2012:i:10:p:872-887
    DOI: 10.1016/j.telpol.2012.06.004
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    2. Mingfeng Wang & Felix Haifeng Liao & Juan Lin & Li Huang & Chengcheng Gu & Yehua Dennis Wei, 2016. "The Making of a Sustainable Wireless City? Mapping Public Wi-Fi Access in Shanghai," Sustainability, MDPI, Open Access Journal, vol. 8(2), pages 1-15, January.
    3. repec:gam:jsusta:v:9:y:2017:i:6:p:946-:d:100442 is not listed on IDEAS
    4. 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.

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