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Determinants of Inter-Country Internet Diffusion Rates

  • Wunnava, Phanindra V.

    ()

    (Middlebury College)

  • Leiter, Daniel B.

    ()

    (Morgan Stanley)

This paper employs cross-sectional data from 100 countries to analyze the main determinants of inter-country Internet diffusion rates. We set up an empirical model based on strong theoretical foundations, in which we regress Internet usage on variables that capture social, economic and political differences between these countries. Our results support past findings that economic strength, infrastructure and knowledge of the English language positively affect Internet connectivity. In addition to these indicators, the openness of a country, tertiary enrollment, and income equality are found to also have a significant positive effect on Internet diffusion.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3666.

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Length: 14 pages
Date of creation: Aug 2008
Date of revision:
Publication status: published in: American Journal of Economics and Sociology, 2009, 68 (2), 413-426
Handle: RePEc:iza:izadps:dp3666
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  1. Chinn, Menzie David & Fairlie, Robert W, 2004. "The Determinants of the Global Digital Divide: A Cross-Country Analysis of Computer and Internet Penetration," Santa Cruz Center for International Economics, Working Paper Series qt2r80c4t3, Center for International Economics, UC Santa Cruz.
  2. Meijers, Huub, 2006. "Diffusion of the Internet and low inflation in the information economy," Information Economics and Policy, Elsevier, vol. 18(1), pages 1-23, March.
  3. Khurram Jamali & Kirsten Wandschneider & Phanindra Wunnava, 2007. "The effect of political regimes and technology on economic growth," Applied Economics, Taylor & Francis Journals, vol. 39(11), pages 1425-1432.
  4. Edward M. Crenshaw & Kristopher K. Robison, 2006. "Globalization and the Digital Divide: The Roles of Structural Conduciveness and Global Connection in Internet Diffusion," Social Science Quarterly, Southwestern Social Science Association, vol. 87(1), pages 190-207.
  5. Hargittai, Eszter, 1999. "Weaving the Western Web: explaining differences in Internet connectivity among OECD countries," Telecommunications Policy, Elsevier, vol. 23(10-11), pages 701-718, November.
  6. Guillén, Mauro F. & Suárez, Sandra L., 2001. "Developing the Internet: entrepreneurship and public policy in Ireland, Singapore, Argentina, and Spain," Telecommunications Policy, Elsevier, vol. 25(5), pages 349-371, June.
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