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The diffusion of Internet: a cross-country analysis


  • David Cuberes

    () (Dpto. Fundamentos del Análisis Económico)

  • Luis Andrés

    () (World Bank)

  • Tomás Serebrisky

    () (World Bank)

  • Mame Astou Diouf

    (International Monetary Fund - IMF)


This paper analyzes the process of Internet diffusion across the world using a panel of 214 countries during the period 1990-2004. Countries are classified as low and high-income and it is shown that the diffusion process is characterized by a different S-shape in each group. The estimated diffusion curves provide evidence of very slow "catching up". The paper also explores the determinants of Internet diffusion and shows that network effects are crucial to explain this process. One important finding is that the degree of competition in the provision of Internet contributes positively to its diffusion.

Suggested Citation

  • David Cuberes & Luis Andrés & Tomás Serebrisky & Mame Astou Diouf, 2010. "The diffusion of Internet: a cross-country analysis," Working Papers. Serie AD 2010-07, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  • Handle: RePEc:ivi:wpasad:2010-07

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    References listed on IDEAS

    1. Lars-Hendrik Roller & Leonard Waverman, 2001. "Telecommunications Infrastructure and Economic Development: A Simultaneous Approach," American Economic Review, American Economic Association, vol. 91(4), pages 909-923, September.
    2. Diego Comin & Bart Hobijn & Emilie Rovito, 2006. "Five Facts You Need to Know About Technology Diffusion," NBER Working Papers 11928, National Bureau of Economic Research, Inc.
    3. Cuberes, David & Dougan, William, 2009. "How Endogenous Is Money? Evidence from a New Microeconomic Estimate," MPRA Paper 17744, University Library of Munich, Germany.
    4. Comin, D. & Hobijn, B., 2004. "Cross-country technology adoption: making the theories face the facts," Journal of Monetary Economics, Elsevier, vol. 51(1), pages 39-83, January.
    5. José J. Sempere Monerris & Rafael Moner Colonques & Amparo Urbano Salvador, 2010. "Trade liberalization in vertically related markets," Working Papers. Serie AD 2010-09, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    6. Andres, Luis & Cuberes, David & Diouf, Mame Astou & Serebrisky, Tomas, 2007. "Diffusion of the internet : a cross-country analysis," Policy Research Working Paper Series 4420, The World Bank.
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    More about this item


    Technological diffusion; Internet; S-shape curve; Network externalities; Digital divide;

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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