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The Diffusion of Internet: A Cross-Country Analysis

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  • Cuberes, David

Abstract

This paper analyzes the process of Internet diffusion across the world using a panel of 199 countries during the time interval 1990-2004. We group countries in two categories, low and high income countries, and show that the Internet diffusion process is well characterized by an S-shape curve for both groups. Low income countries display a steeper diffusion curve and equivalent to a right shift of the high income countries diffusion curve. The estimated diffusion curves provide evidence of a “catching up” process, although a very slow one. We next explore the determinants of Internet diffusion at the country level and across the same income groups. Our most novel finding is that network effects seem to be crucial—the number of Internet users in a country at a given year is positively associated with the number of users in the previous year. We also find that the degree of competition in the provision of Internet contributes positively to its diffusion and we also identify significant positive language externalities.

Suggested Citation

  • Cuberes, David, 2008. "The Diffusion of Internet: A Cross-Country Analysis," MPRA Paper 8433, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:8433
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    File URL: https://mpra.ub.uni-muenchen.de/8433/1/MPRA_paper_8433.pdf
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    References listed on IDEAS

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    Cited by:

    1. PENARD Thierry & POUSSING Nicolas & MUKOKO Blaise & TAMOKWE Georges Bertrand, 2013. "Internet adoption and usage patterns in Africa: Evidence from Cameroon," LISER Working Paper Series 2013-22, LISER.
    2. PENARD Thierry & POUSSING Nicolas & ZOMO YEBE Gabriel & NSI ELLA Philémon, 2012. "Usage d'Internet et du téléphone mobile en Afrique : une comparaison des déterminants d'adoption sur données gabonaises," LISER Working Paper Series 2012-15, LISER.

    More about this item

    Keywords

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

    JEL classification:

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

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