Effect of Enterprise Ownership and Foreign Competition on Internet Diffusion in the Transition Economies

George Clarke

Comparative Economic Studies, 2004, vol. 46, issue 2, 370 pages

Abstract: Using enterprise-level data from 21 low and middle income economies in Eastern Europe and Central Asia, this paper looks at factors that influence whether enterprises in these countries are connected to the Internet. The paper finds that foreign-owned enterprises are more likely to have Internet access than domestically owned enterprises and that employee-owned enterprises are less likely to have access than other domestically owned enterprises. Further, there is evidence of positive externalities from foreign investment, with foreign direct investment increasing Internet access among domestic enterprises other than the recipient firm. In particular, the paper finds evidence of ‘spillover effects’, where enterprises directly competing with foreign-owned enterprises and imports are more likely to have Internet connections than similar enterprises that compete mainly with domestically owned enterprises. The results are robust to the inclusion of country fixed effects to control for unobserved country-level characteristics that might affect Internet adoption. Comparative Economic Studies (2004) 46, 341–370. doi:10.1057/palgrave.ces.8100038

Date: 2004
References: Add references at CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.palgrave-journals.com/ces/journal/v46/n2/pdf/8100038a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/ces/journal/v46/n2/full/8100038a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:compes:v:46:y:2004:i:2:p:341-370

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/41294/PS2

Access Statistics for this article

Comparative Economic Studies is currently edited by Nauro Campos

More articles in Comparative Economic Studies from Palgrave Macmillan, Association for Comparative Economic Studies Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().