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Diffusion of the internet : a cross-country analysis

Author

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  • Andres, Luis
  • Cuberes, David
  • Diouf, Mame Astou
  • Serebrisky, Tomas

Abstract

This paper analyzes the process of Internet diffusion across the world using a panel of 199 countries during 1990-2004. The authors 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 that is equivalent to a right shift of the diffusion curve for high-income countries. The estimated diffusion curves provide evidence of a"catching-up"process, although a very slow one. The paper explores the determinants of Internet diffusion at the country level and across the same income groups. The most novel finding is that network effects seem to be crucial-the number of Internet users in a country in a given year is positively associated with the number of users in the previous year. The findings also show that the degree of competition in the provision of Internet service contributes positively to its diffusion, and there are significant positive language externalities.

Suggested Citation

  • 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.
  • Handle: RePEc:wbk:wbrwps:4420
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    References listed on IDEAS

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    Cited by:

    1. Calzada, Joan & Martínez-Santos, Fernando, 2014. "Broadband prices in the European Union: Competition and commercial strategies," Information Economics and Policy, Elsevier, vol. 27(C), pages 24-38.
    2. Chakraborty, Shankha & Papageorgiou, Chris & Pérez Sebastián, Fidel, 2010. "Diseases, infection dynamics, and development," Journal of Monetary Economics, Elsevier, vol. 57(7), pages 859-872, October.
    3. 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).
    4. Corrado Benassi & Marcella Scrimitore, 2017. "Income Distribution in Network Markets," Journal of Industry, Competition and Trade, Springer, vol. 17(3), pages 251-271, September.
    5. Amedeo Piolatto, 2015. "Itemised Deductions: A Device to Reduce Tax Evasion," German Economic Review, Verein für Socialpolitik, vol. 16(4), pages 422-438, November.
    6. Wolfgang Briglauer, 2014. "The impact of regulation and competition on the adoption of fiber-based broadband services: recent evidence from the European union member states," Journal of Regulatory Economics, Springer, vol. 46(1), pages 51-79, August.
    7. Ewa Lechman, 2013. "New Technologies Adoption And Diffusion Patterns In Developing Countries. An Empirical Study For The Period 2000-2011," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 8(4), pages 79-106, December.
    8. Richard Pomfret & Patricia Sourdin, 2010. "Why do trade costs vary?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 146(4), pages 709-730, December.
    9. Andre Jungmittag & Paul Welfens, 2014. "Telecommunications dynamics, output and employment," International Economics and Economic Policy, Springer, vol. 11(1), pages 179-195, February.
    10. Thierry PENARD & Nicolas POUSSING & Gabriel ZOMO YEBE & Philémon NSI ELLA, 2012. "Comparing the Determinants of Internet and Cell Phone Use in Africa: Evidence from Gabon," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(86), pages 65-83, 2nd quart.
    11. Elena Márquez & Belén Nieto Doménech & Gonzalo Rubio Irigoyen, 2010. "Consumption, liquidity and the cross-sectional variation of expected returns," Working Papers. Serie AD 2010-24, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    12. Shchetinin, Oleg & Baptiste, Massenot, 2008. "How to Overcome the Digital Divide? The Determinants of Internet Diffusion," MPRA Paper 9413, University Library of Munich, Germany.
    13. 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.
    14. Dolores Guilló, María & Papageorgiou, Chris & Perez-Sebastian, Fidel, 2011. "A unified theory of structural change," Journal of Economic Dynamics and Control, Elsevier, vol. 35(9), pages 1393-1404, September.
    15. Patricia Sourdin & Richard Pomfret, 2012. "Trade Facilitation," Books, Edward Elgar Publishing, number 14596.
    16. Carlos D. Santos, 2010. "Competition, product and process innovation: an empirical analysis," Working Papers. Serie AD 2010-26, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    17. José Alcalde Pérez & José Angel Silva Reus & María del Carmen Marco Gil, 2010. "A new prospect of additivity in bankruptcy problems," Working Papers. Serie AD 2010-27, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    18. Dragomir Sundac & Irena Fatur Krmpotic, 2011. "Knowledge Economy Factors and the Development of Knowledge-based Economy," Croatian Economic Survey, The Institute of Economics, Zagreb, vol. 13(1), pages 105-141, April.
    19. M. Angeles Carnero Fernández & Blanca Martínez & Rocío Sánchez Mangas, 2010. "Mobbing and workers' health: an empirical analysis for Spain," Working Papers. Serie AD 2010-30, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).

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    Keywords

    Technology Industry; Information Security&Privacy; E-Business; Income; Education for the Knowledge Economy;

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