Determinants of Inter-Country Internet Diffusion Rates

Abstract:     
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.

Number of Pages in PDF File: 14

Keywords: internet, technological diffusion, inequality, education, English proficiency

JEL Classification: O33, D63, I20

working papers series