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Differences in digitalization levels: a multivariate analysis studying the global digital divide

Author

Listed:
  • Margarita Billon

    (Autonomous University of Madrid)

  • Fernando Lera-Lopez

    (Public University of Navarre)

  • Rocío Marco

    (Autonomous University of Madrid)

Abstract

This papers aims to identify and explain the differences in information and communications technologies (ICT) adoption for a sample of 142 developed and developing countries. In addition, we examine the relationships between specific combinations of technologies and the factors explaining them. Although income is a key factor for all country groups, its role is more significant for middle-digitalization countries. Using several multivariate techniques, we detect different patterns of digitalization. The patterns are explained to differing degrees by the type of country, by differences in economic development, and by socio-demographic and institutional variables. Factors such as quality of regulation and infrastructure explain ICT adoption in high-income countries. The ICT combination associated with specific income groups as well as the explanatory variables detected for each of them might be useful to implement the most appropriate policy actions to reduce the digital divide.

Suggested Citation

  • Margarita Billon & Fernando Lera-Lopez & Rocío Marco, 2010. "Differences in digitalization levels: a multivariate analysis studying the global digital divide," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 146(1), pages 39-73, April.
    • Handle: RePEc:spr:weltar:v:146:y:2010:i:1:d:10.1007_s10290-009-0045-y
    DOI: 10.1007/s10290-009-0045-y
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    More about this item

    Keywords

    Digital divide; ICT; Digitalization; Internet; Economic development; Canonical correlation analysis;
    All these keywords.

    JEL classification:

    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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