Bridging the Digital Divide : How Enterprise Ownership and Foreign Competition Affect Internet Access in Eastern Europe and Central Asia
Many observers attributed the rapid productivity growth observed in the United States in the mid- to late 1990s, to the growing use of information, and the Internet. This in turn created concern that developing, and transition economies - where use...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2001/07/1551960/bridging-digital-divide-enterprise-ownership-foreign-competition-affect-internet-access-eastern-europe-central-asia http://hdl.handle.net/10986/19585 |
| Summary: | Many observers attributed the rapid
productivity growth observed in the United States in the
mid- to late 1990s, to the growing use of information, and
the Internet. This in turn created concern that developing,
and transition economies - where use of information
technology, and the Internet was less widespread - would be
left behind as productivity, and growth accelerated in
technologically advanced countries, and stagnated elsewhere.
Using enterprise-level data from twelve transition
economies, the author looks at factors that affect whether
enterprises in these countries are connected to the
Internet. He finds that foreign-owned enterprises are more
likely to have Internet access than other enterprises. And
that employee-owned enterprises are less likely to have
access. Even after controlling for other factors that might
affect Internet connectivity, the quality of a
country's telecommunications infrastructure appears to
have a significant effect on the likelihood that an
enterprise in that country has Internet access. Reducing
corruption, and taking other steps to improve the business
environment, would benefit domestic economies, even if
Internet access had little short-term impact on
productivity, or growth. |
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