Disparities in ICT adoption: A multidimensional approach to study the cross-country digital divide

Authors:
Margarita Billon;Rocio Marco;Fernando Lera-Lopez
Affiliations:
Autonomous University of Madrid, Department of Economic Development, Carretera de Colmenar Viejo, Km 15 28049 Madrid, Spain;Autonomous University of Madrid, Department of Applied Economy, Carretera de Colmenar Viejo, Km 15 28049 Madrid, Spain;Public University of Navarre, Department of Economics Campus, Arrosadía s/n 31006 Pamplona, Spain
Venue:
Telecommunications Policy
Year:
2009

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Abstract

This paper presents a cross-country study on the determinants of information and communication technology (ICT) diffusion using multivariate analysis techniques to capture the relative and multidimensional character of digital divide. Using canonical correlation analysis, the differences detected between groups of countries both in terms of ICT patterns and in terms of the factors explaining each are compared. The results provide the ability to distinguish between different patterns of ICT adoption that can be explained primarily by variables associated with differences in development levels. In countries registering higher levels of ICT adoption, the digitalization pattern is explained by GDP, service sector, education, and governmental effectiveness. In contrast, in developing countries, population age and urban population are positively associated with the ICT adoption, while Internet costs impact negatively. The results might be useful in finding and implementing the most suitable telecommunication and development policies for each case.