Analysis of Determinants of Business Demand for Internet Access in Addiss Ababa
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Date
2006-07
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Addis Ababa University
Abstract
Recognizing the benefits of Information Communication Technologies (ICTs) in
general and Internet in particular to the overall advancement of social, economic
and politics of a country, developing countries are investing on network
infrastructures. However, the penetration level of the countries such as Ethiopia
has been very low which will hinder the country not to reap the benefits of the
technologies. The purpose of this study was to identify the determinants of
Internet diffusion among business organization in Addis Ababa. Hence, a survey
was conducted on a random sample of businesses and a logit model of Internet
access was estimated. The major result of the estimated model indicate that the
likelihood of access to the Internet by a firm is explained by the level of the
education of the management, level of sales of the business and its openness to
international trade. Furthermore, the descriptive analysis showed that among the
connected businesses the use of Internet is limited to email and browsing, while
advanced electronics uses such as E-commerce, E-procurement, etc. are almost
non-existent
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Keywords
Information Communication Technologies