Shchetinin, Oleg and Baptiste, Massenot (2008): How to Overcome the Digital Divide? The Determinants of Internet Diffusion.
Preview |
PDF
MPRA_paper_9413.pdf Download (245kB) | Preview |
Abstract
We document the existence and the persistence of the digital divide and investigate the determinants of the Internet diffusion in both developing and developed countries. Our study innovates on the following: i) we use a data set that covers more countries and years than the earlier studies ii) We use the GMM estimator which requires milder assumptions to be consistent than the traditionally used panel data estimators in technology diffusion studies.
We find that i) the digital divide is likely to persist over time, ii) the Internet diffusion process is dynamic which makes static estimators inconsistent, iii) Internet adoption starts later but goes faster in developing countries, iv) inflows of the foreign investment and better human capital boost the diffusion of Internet for the developing countries only and v) GDP per capita has a negative impact on Internet diffusion in the developing countries and a positive impact in developed countries. This last finding seems surprising but it is consistent with the conditional convergence hypothesis as well as with the resource curse theory.
Item Type: | MPRA Paper |
---|---|
Original Title: | How to Overcome the Digital Divide? The Determinants of Internet Diffusion |
Language: | English |
Keywords: | internet diffusion, digital divide, panel data, GMM |
Subjects: | C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C23 - Panel Data Models ; Spatio-temporal Models O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O32 - Management of Technological Innovation and R&D O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O33 - Technological Change: Choices and Consequences ; Diffusion Processes |
Item ID: | 9413 |
Depositing User: | Oleg Shchetinin |
Date Deposited: | 02 Jul 2008 00:45 |
Last Modified: | 10 Oct 2019 11:29 |
References: | T.W. Anderson and C. Hsiao. Formulation and Estimation of Dynamic Models Using Panel Data. Institute for Policy Analysis, University of Toronto, 1981. [2] L. Andres, D. Cuberes, M.A. Diouf, and T. Serebrisky. Diffusion of the Internet: A Cross-Country Analysis. World, 2007. [3] M. Arellano and S. Bond. Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations. The Review of Economic Studies, 58(2):277–297, 1991. [4] M. Arellano and O. Bover. Another look at the instrumental variable estimation of error-components models. Journal of Econometrics, 68(1):29– 51, 1995. [5] The World Bank. World development indicators. World Bank, 2004. [6] R.J. Barro and X. Sala-i Martin. Economic growth. MIT Press, 2004. [7] R. Blundell and S. Bond. Initial conditions and moment restrictions in dynamic panel data models. Journal of Econometrics, 87(1):115–143, 1998. [8] Francesco Caselli and Wilbur John Coleman II. Cross-country technology diffusion: The case of computers. Nber working papers, National Bureau of Economic Research, Inc, February 2001. [9] M.D. Chinn and R.W. Fairlie. The determinants of the global digital di- vide: a cross-country analysis of computer and internet penetration. Oxford Economic Papers, 2006. [10] Menzie D. Chinn and RobertW. Fairlie. Ict use in the developing world: An analysis of differences in computer and internet penetration. Nber working papers, National Bureau of Economic Research, Inc, July 2006. [11] Susmita Dasgupta, Somik Lall, and david Wheeler. Policy Reform, Eco- nomic Growth, and the Digital Divide: An Econometric Analysis. Working paper, Developement Reserach Group, World Bank, 2001. [12] Sanjeev Dewan, Dale Ganley, and Kenneth L. Kraemer. Across the Digital Divide: A Cross-Country Analysis of the Determinants of IT Penetration. Journal of the Association of Information Systems, 2005. [13] Sanjeev Dewan and Frederick J. Riggins. The digital divide: Current and future research directions. Journal of Association for Information Systems, 6(2):298–337, 2005. [14] Eszter Hargittai. Weaving the Western Web: explaining differences in Internet connectivity among OECD countries. Telecommunications Policy, 23(10-11):701–718, 1999. [15] G. Jarne, J. Sanchez-Choliz, and F. Fatas-Villafranca. S-shaped curves in economic growth. A theoretical contribution and an application*. Evolu- tionary and Institutional Economics Review, 3(2):239–259, 2007. [16] Sampsa Kiiski and Matti Pohjola. Cross-country diffusion of the internet. Information Economics and Policy, 14(2):297–310, 2002. [17] D. Roodman. A Short Note on the Theme of Too Many Instruments. Center for Global Development, 2007. [18] David Roodman. How to do xtabond2: An introduction to difference and system gmm in stata. Center for Global Development, (Working Paper No. 103), 2006. [19] J.D. Sachs and A.M. Warner. The curse of natural resources. European Economic Review, 45(4-6):827–838, 2001. [20] JD Sargan. The Estimation of Economic Relationships using Instrumental Variables. Econometrica, 26(3):393–415, 1958. [21] UNCTAD. The Digital Divide Report: ICT Diffusion Index. United Na- tions Publications, 2005. [22] S.J. Wallsten. Regulation and Internet Use in Developing Countries. World Bank, Development Research Group, Investment Climate, 2003. [23] F. Windmeijer. A finite sample correction for the variance of linear efficient two-step GMM estimators. Journal of Econometrics, 126(1):25–51, 2005. |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/9413 |