Trade blocs and the global digital divide : a spatial panel data approach

Abstract

In order to get a better understanding of worldwide Internet usage differences, spatial interaction effects are added to a model explaining cross-country growth in Internet usage. The paper finds that ICT infrastructure growth has a positive and significant effect on Internet usage growth in one’s own country as well as in other countries. The findings suggest that the efficiency of policies aimed at decreasing the global digital divide can be increased if they are initiated on a trade bloc level. Contrary to earlier papers no significant role for income in explaining cross-country Internet usage differences is found.