The Effect of Economic Factors on Internet Diffusion in Developing Countries

Document Type : Research Paper

Authors

1 Associate Professor of Economics, University of Tabriz

2 Ph.D. Student in Economics, University of Tabriz

Abstract

The purpose of this study is to investigate the effects of economic variables on the internet diffusion in thedeveloping countries. For this purpose a dynamic panel datamodel (GMM) has been estimated overthe period 1995- 2012 and among 123 developing countries. The results show that per capita income, the rate of urbanization, trade openness and human capital have a significant and positive effect on the internet diffusion. Moreover, the results indicate that the impact of ICT infrastructure on the internet diffusion is significant and positive. The results of a sensitivity analysis also reveal that increasing the share of the service sector of GDP increases the internet diffusion; while, an increase in the share of the agricultural sector has a negative effect on the internet diffusion.

Keywords


  1.  

    1- سبحانی، حسن و محمدی گیگلو، اسلام (1384). برآورد تأثیر متغیرهای اقتصادی بر توسعه فناوری اطلاعات در کشورهای درحال‌توسعه، مجله تحقیقات اقتصادی، 71، 38-1. 

    2- صباغ کرمانی، مجید و نجفی، نرگس (1384). تخمین تابع تقاضای اینترنت: مطالعه موردی شهر تهران، فصلنامه پژوهش‌های بازرگانی، 36، 74-53. 

    3- کریمی تکانلو، زهرا و رنج پور، رضا (1392). اقتصادسنجی داده‌های پانلی، انتشارات سمت، چاپ اول، 259-183.

    4- ملکی، حمیده (1392). بررسی رابطه بین میزان استفاده از رسانه‌های فراملی و عوامل مرتبط با آن با تأکید بر تعلق قومی و ملی در بین جوانان ماهنشان. پایان نامه کارشناسی ارشد، دانشکده علوم انسانی و اجتماعی، دانشگاه آزاد اسلامی واحد زنجان.

     

    1. Andres, L. Cuberes, D., Diouf, M., & Serebrisky, T. (2010). The Diffusion   of the Internet: a cross-country analysis. Journal of Telecommunications Policy, 34 (5-6), 323–340.
    2. Arellno, M., & Bond, S. (1991). Same tests of specification for panel data, Monte Carlo evidence and an application to employment equations. The Review of Economic Studies, 58 (2), 277-297.
    3. Baltagi, B. H. (2005). Econometric analysis of Panel Data. Chichester: John & Sons Ltd. 3. Edition - April 2005 49.90 Euro 2005.

    4. Beilock, R., & Dimitrova, D.V. (2003). An exploratory model of inter-country internet diffusion. Journal of Telecommunications Policy, 27, 237–252.

    5. Birba, O., & Diagne, A. (2012). Determinants of adoption of internet in africa: case of 17 Sub-Saharan countries. Structural Change and Economic Dynamics, 23, 463– 472.

    6. Brown, L. A. (1981). Innovation diffusion: a new perspective. New York: Methuen.

    7. Caselli, F., & Coleman, W. J. II. (2001). Cross-country technology diffusion: the case of computers.American Economic Review, 91(2), 328–335.

    8. Chinn, M. D., & Fairlie, R. W. (2007). The determinants of the global digital divide: a cross-country analysis of computer and internet penetration. OxfordEconomic Papers, 59, 16–44.

    9. Crenshaw, E. M., & Robinson, K. K. (2006). Globalization and the digital divide: roles of structural conduciveness and global connection in Internet diffusion. Social Science Quarterly, 87, 190–207.

    10. Estache, A., Manacorda, M., & Valletti, T. M. (2002).Telecomm unications, reform, access regulation, and internet adoption in Latin America.Journal of EconomiesPublican, 2 (2), 153–217.

    11. Gordon, R.J. (2000). Does the "New Economy" measure Up to the great inventions of the past?. Journal of Economic Perspectives, 14(4), 49-74.

    12. Guangchao Ch. F. (2015). Factors affecting internet diffusion in China: a multivariate time series analysis. Journal of Telematics and Informatics, 32 (4), 681–693.

    13. Guillen, M., & Suarez, S. (2001). Developing the internet: entrepreneurship and public policy in Ireland, Singapore, Argentina, and Spain. Journal of Telecomm Policy, 25 (5), 349–371.

    14. Hargittai, E. (1999). Weaving the western web: explaining difference in internet connectivityamong OECD countries. Telecommunications Policy, 23 (10/11), 701–718.

    15. International Telecommunication Union (ITU) (2014). Retrieved From: www.itu.int/, accessed online 5 April 2014.

    16. Kiiski, S. & Pohjola, M. (2002). Cross country diffusion of the internet. Information Economics and Policy, 14 (2), 297–310.

    17. Lawson, R., Alcock, C., and Cooper, J. (2002). Diffusion of electronic commerce in small and medium enterprises. Australasian Journal of Information Systems, 9 (2), 123-134.

    18. Lee, H., O'Keefe R. M., & Yun, K. (2003). The growth of broadband and electronic commerce in South Korea: contributing factors, Journal of Information society, 19 (1), 81-93.

    19.  Li, R., & shiu, A. (2012). Internet diffusion in China: a dynamic panel data analysis. Telecommunications Policy, 36, 872–887.

    20. McCoy, S., Everard, A., & Jones, B. (2005). An examination of the technology acceptance model in Uruguay and the US: a focus on culture. Journal of Global Information Technology Management, 8 (2), 27-45.

    21. McCoy, S. S., Cha, H., & Durcikova, A. (2012). Modeling internet diffusion in developing countries. Australasian Journal of Information Systems, 17 (2), 1-19.

    22. Oyeyinka, B.O., & Lal, K. (2005). Internet diffusion in Sub-Saharan Africa: a cross-country analysis. Telecommunications Policy, 29 (7), 507–527.

    23. Pohjola, M. (2003). The adoption and diffusion of ICT across countries: patterns and determinants. New Economy Handbook, 5 (10) , 77–100.

    24.  Press, L., Burkhart, G., Foster, W., Goodman, S., Wolcott, P., & Woodard, J. (1998). An internet diffusion framework. Communications of the ACM, 41(10), 21–26.

    25.  Rogers, E. M.(1995). Diffusion of innovations, in diffusion of innovation, The Free Press, New York.

    26.  Salman, A., Hasim, M.S. (2011). Internet usage in a Malaysian sub-urban community: a study of diffusion of ICT innovation. The Innovation Journal: The Public Sector Innovation Journal, 16(2), 1-15.

    27.  World Bank (2014). World Development Indicators. Available at: http://data.worldbankorg, accessedonline 10 July 2014.

    28.  Wunnava, P. V., & Leiter, D. B. (2009). Determinants of inter country internet diffusion rates. American Journal of Economics and Sociology, 68(2), 413–426.