IDEAS home Printed from https://ideas.repec.org/a/eee/telpol/v47y2023i1s0308596122001574.html
   My bibliography  Save this article

Development of the ICT sector and the determinants of Internet use in the Southern Caucasus

Author

Listed:
  • Doyar, Bayram Veli
  • Rzali, Shamsi
  • Dikkaya, Mehmet

Abstract

This paper examines Internet use in the Southern Caucasus by qualitative and quantitative methods. Firstly, as the developments in ICTs affect Internet use, the macroeconomic problems faced in the development of the sector are qualitatively analyzed. It is seen that high Internet service prices, government dominance, and lack of competition in the ICT sector as well as the wars in some regions are obstacles to Internet use. Finally, the determinants of Internet use are explored using survey data and employing microeconometric techniques considering sample selection. The empirical findings, inter alia, indicate that key variables contributing to frequent Internet use are computer ability in Armenia and computer ownership in Azerbaijan, and mobile phone ownership in Georgia.

Suggested Citation

  • Doyar, Bayram Veli & Rzali, Shamsi & Dikkaya, Mehmet, 2023. "Development of the ICT sector and the determinants of Internet use in the Southern Caucasus," Telecommunications Policy, Elsevier, vol. 47(1).
    • Handle: RePEc:eee:telpol:v:47:y:2023:i:1:s0308596122001574
    DOI: 10.1016/j.telpol.2022.102455
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0308596122001574
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.telpol.2022.102455?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. James J. Heckman, 1976. "The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 4, pages 475-492, National Bureau of Economic Research, Inc.
    2. Giuseppe De Luca & Valeria Perotti, 2011. "Estimation of ordered response models with sample selection," Stata Journal, StataCorp LP, vol. 11(2), pages 213-239, June.
    3. Martínez-Domínguez, Marlen & Mora-Rivera, Jorge, 2020. "Internet adoption and usage patterns in rural Mexico," Technology in Society, Elsevier, vol. 60(C).
    4. Max Spoor & Luca Tasciotti & Mihail Peleah, 2014. "Quality of life and social exclusion in rural Southern, Central and Eastern Europe and the CIS," Post-Communist Economies, Taylor & Francis Journals, vol. 26(2), pages 201-219, June.
    5. Xu Xu & Alison Watts & Markum Reed, 2019. "Does access to internet promote innovation? A look at the U.S. broadband industry," Growth and Change, Wiley Blackwell, vol. 50(4), pages 1423-1440, December.
    6. Fang, Xiang & Yen, David C., 2006. "Demographics and behavior of Internet users in China," Technology in Society, Elsevier, vol. 28(3), pages 363-387.
    7. Martínez-Domínguez, Marlen & Fierros-González, Isael, 2022. "Determinants of internet use by school-age children: The challenges for Mexico during the COVID-19 pandemic," Telecommunications Policy, Elsevier, vol. 46(1).
    8. Vicente, Maria Rosalia & Lopez, Ana Jesus, 2006. "Patterns of ICT diffusion across the European Union," Economics Letters, Elsevier, vol. 93(1), pages 45-51, October.
    9. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-351, March.
    10. Thierry PENARD & Nicolas POUSSING & Gabriel ZOMO YEBE & Philémon NSI ELLA, 2012. "Comparing the Determinants of Internet and Cell Phone Use in Africa: Evidence from Gabon," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(86), pages 65-83, 2nd quart.
    11. Fairlie Robert W, 2004. "Race and the Digital Divide," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 3(1), pages 1-38, September.
    12. Nicole Zillien & Eszter Hargittai, 2009. "Digital Distinction: Status‐Specific Types of Internet Usage," Social Science Quarterly, Southwestern Social Science Association, vol. 90(2), pages 274-291, June.
    13. Shahin Guseynov & Ravshan Abdullaev & Teymur Mehdiyev & Anastasia Edelkina, 2021. "Information & communication technologies (ICT) and economic development of the Azerbaijan Republic," Journal of World Economy: Transformations & Transitions, ERUDITUS, vol. 1(01).
    14. Hiroshi Ono & Madeline Zavodny, 2003. "Gender and the Internet," Social Science Quarterly, Southwestern Social Science Association, vol. 84(1), pages 111-121, March.
    15. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    16. Zvi Griliches, 1998. "Productivity and R&D at the Firm Level," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 100-133, National Bureau of Economic Research, Inc.
    17. Zvi Griliches, 1984. "R&D, Patents, and Productivity," NBER Books, National Bureau of Economic Research, Inc, number gril84-1, February.
    18. Cristiano Antonelli, 2007. "Technological knowledge as an essential facility," Journal of Evolutionary Economics, Springer, vol. 17(4), pages 451-471, August.
    19. Davide Quaglione & Massimiliano Agovino & Claudio Di Berardino & Alessandro Sarra, 2018. "Exploring additional determinants of fixed broadband adoption: policy implications for narrowing the broadband demand gap," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 27(4), pages 307-327, May.
    20. Alderete, María Verónica, 2019. "Examining the drivers of internet use among the poor: The case of Bahía Blanca city in Argentina," Technology in Society, Elsevier, vol. 59(C).
    21. Homi Kharas & Indermit Gill, 2007. "An East Asian Renaissance : Ideas for Economic Growth," World Bank Publications - Books, The World Bank Group, number 6798.
    22. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    23. Matteo Grazzi & Sebastián Vergara, 2014. "Internet in Latin America: who uses it? ... and for what?," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 23(4), pages 327-352, June.
    24. Fuat SEKMEN & Hasmet GOKIRMAK, 2018. "Causal relationship between internet use and economic development for selected Central Asian economies," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(3(616), A), pages 145-152, Autumn.
    25. Goldfarb, Avi & Prince, Jeff, 2008. "Internet adoption and usage patterns are different: Implications for the digital divide," Information Economics and Policy, Elsevier, vol. 20(1), pages 2-15, March.
    26. Michael Demoussis & Nicholas Giannakopoulos, 2006. "Facets of the digital divide in Europe: Determination and extent of internet use," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(3), pages 235-246.
    27. Fernando Lera-Lopez & Margarita Billon & Maria Gil, 2011. "Determinants of Internet use in Spain," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 20(2), pages 127-152.
    28. Ira M. Wasserman & Marie Richmond‐Abbott, 2005. "Gender and the Internet: Causes of Variation in Access, Level, and Scope of Use," Social Science Quarterly, Southwestern Social Science Association, vol. 86(1), pages 252-270, March.
    29. Forsythe, Sandra M. & Shi, Bo, 2003. "Consumer patronage and risk perceptions in Internet shopping," Journal of Business Research, Elsevier, vol. 56(11), pages 867-875, November.
    30. Ariel Pakes & Zvi Griliches, 1984. "Patents and R&D at the Firm Level: A First Look," NBER Chapters, in: R&D, Patents, and Productivity, pages 55-72, National Bureau of Economic Research, Inc.
    31. Myovella, Godwin & Karacuka, Mehmet & Haucap, Justus, 2020. "Digitalization and economic growth: A comparative analysis of Sub-Saharan Africa and OECD economies," Telecommunications Policy, Elsevier, vol. 44(2).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hernández de Rojas, Félix & Pita, Pilar Rodríguez & Pérez Martínez, Jorge Emiliano, 2024. "Assessing the European association between digitalization and innovation," Telecommunications Policy, Elsevier, vol. 48(7).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Viroj Jienwatcharamongkhol & Sam Tavassoli, 2015. "Closing the gap: empirical evidence on firms’ innovation, productivity and exports," Chapters, in: Charlie Karlsson & Urban Gråsjö & Sofia Wixe (ed.), Innovation and Entrepreneurship in the Global Economy, chapter 12, pages 281-309, Edward Elgar Publishing.
    2. Almas Heshmati & Hyesung Kim, 2011. "The R&D and productivity relationship of Korean listed firms," Journal of Productivity Analysis, Springer, vol. 36(2), pages 125-142, October.
    3. Choi, Mincheol & Lee, Chang-Yang, 2021. "Technological diversification and R&D productivity: The moderating effects of knowledge spillovers and core-technology competence," Technovation, Elsevier, vol. 104(C).
    4. Martínez-Domínguez, Marlen & Mora-Rivera, Jorge, 2020. "Internet adoption and usage patterns in rural Mexico," Technology in Society, Elsevier, vol. 60(C).
    5. Bruno Crepon & Emmanuel Duguet & Jacques Mairesse, 1998. "Research, Innovation And Productivity: An Econometric Analysis At The Firm Level," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 7(2), pages 115-158.
    6. repec:lic:licosd:20308 is not listed on IDEAS
    7. Montresor, Sandro & Vezzani, Antonio, 2015. "The production function of top R&D investors: Accounting for size and sector heterogeneity with quantile estimations," Research Policy, Elsevier, vol. 44(2), pages 381-393.
    8. Marios Zachariadis, 2003. "R&D, innovation, and technological progress: a test of the Schumpeterian framework without scale effects," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 36(3), pages 566-586, August.
    9. Andrea Caragliu & Peter Nijkamp, 2008. "The Impact of Regional Absorptive Capacity on Spatial Knowledge Spillovers," Tinbergen Institute Discussion Papers 08-119/3, Tinbergen Institute.
    10. Richard M. H. Suen, 2013. "Research Policy and U.S. Economic Growth," Working papers 2013-18, University of Connecticut, Department of Economics.
    11. Jianhua Zhang & Mohammad Shahidul Islam, 2020. "The Heterogeneous Impacts of R&D on Innovation in Services Sector: A Firm-Level Study of Developing ASEAN," Sustainability, MDPI, vol. 12(4), pages 1-22, February.
    12. Martínez-Domínguez, Marlen & Fierros-González, Isael, 2022. "Determinants of internet use by school-age children: The challenges for Mexico during the COVID-19 pandemic," Telecommunications Policy, Elsevier, vol. 46(1).
    13. Granguillhome Ochoa, Rogelio & Lach, Samantha & Masaki, Takaaki & Rodríguez-Castelán, Carlos, 2022. "Mobile internet adoption in West Africa," Technology in Society, Elsevier, vol. 68(C).
    14. Bettina Peters & Rebecca Riley & Iulia Siedschlag & Priit Vahter & John McQuinn, 2018. "Internationalisation, innovation and productivity in services: evidence from Germany, Ireland and the United Kingdom," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 154(3), pages 585-615, August.
    15. Bronwyn Hall & Francesca Lotti & Jacques Mairesse, 2009. "Innovation and productivity in SMEs: empirical evidence for Italy," Small Business Economics, Springer, vol. 33(1), pages 13-33, June.
    16. Baumann, Julian & Kritikos, Alexander S., 2016. "The link between R&D, innovation and productivity: Are micro firms different?," Research Policy, Elsevier, vol. 45(6), pages 1263-1274.
    17. Wadho, Waqar & Chaudhry, Azam, 2020. "Innovation Strategies and Productivity Growth in Developing Countries: Evidence from Pakistan," GLO Discussion Paper Series 466, Global Labor Organization (GLO).
    18. Gurneeta Vasudeva & Jennifer W. Spencer & Hildy J. Teegen, 2013. "Bringing the Institutional Context Back In: A Cross-National Comparison of Alliance Partner Selection and Knowledge Acquisition," Organization Science, INFORMS, vol. 24(2), pages 319-338, April.
    19. Peters, Bettina & Lööf, Hans & Janz, Norbert, 2003. "Firm Level Innovation and Productivity: Is there a Common Story Across Countries?," ZEW Discussion Papers 03-26, ZEW - Leibniz Centre for European Economic Research.
    20. Cristiano Antonelli & Alessandra Colombelli, 2017. "The locus of knowledge externalities and the cost of knowledge," Regional Studies, Taylor & Francis Journals, vol. 51(8), pages 1151-1164, August.
    21. Giuseppe Medda & Claudio Piga, 2014. "Technological spillovers and productivity in Italian manufacturing firms," Journal of Productivity Analysis, Springer, vol. 41(3), pages 419-434, June.

    More about this item

    Keywords

    Internet; Innovation; ICT; Armenia; Azerbaijan; Georgia;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:telpol:v:47:y:2023:i:1:s0308596122001574. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/30471/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.