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The Effect of Economic Factors on Internet Diffusion in Developing Countries

Behazad Salmani (), Parviz Mohammadzadeh () and Hamid Zolghadr ()
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Parviz Mohammadzadeh: Associate Professor of Economics, University of Tabriz
Hamid Zolghadr: Ph.D. Student in Economics, University of Tabriz

Quarterly Journal of Applied Theories of Economics, 2015, vol. 2, issue 2, 81-102

Abstract: The purpose of this study is to investigate the effects of selected economic variables on the internet diffusion in the developing countries. For this purpose a dynamic panel data model (GMM) has been estimated over the 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: Internet Diffusion; Economic Factors; Developing Countries; Generalized Method of Moments. (search for similar items in EconPapers)
JEL-codes: C33 O10 O30 O57 (search for similar items in EconPapers)
Date: 2015
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