Determinants of Internet Penetration in Developing Countries: Evidence from Sub-Saharan Africa
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Date
2015-07
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Addis Ababa University
Abstract
Internet use, especially in developing countries, has expanded rapidly in recent years. Even in light of this, penetration rates differ markedly between developed and developing countries and across developing countries.
To identify the determinants of Internet penetration in low income countries of SSA, the study examines panel data for 25 SSA countries over the year 2009-2013 periods using Arellano and Bover (1995) dynamic panel data estimation technique. The study find evidence indicating that network externalities, GDP percapita, mobile cellular subscription, ICT goods import from developed countries, and urbanization are associated with high internet penetration rates. Estimates from Arellano Bover (1995) reveal that the main factor responsible for low rates of internet penetration is unemployment.
Hence, policy measures geared towards improving the countries investment in telecommunication sector, expanding productive employment should be given due emphasis if the economy is to benefit from internet use.
Key words: Internet penetration, Dynamic Panel data, and SSA
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Keywords
Internet penetration, Dynamic Panel data