Economic performance and internet usage across countries with a focus on small states

Abstract

This dissertation seeks to explore the relationship between Internet Penetration rates (IPRs) across countries and a set of variables. The focus throughout the study was on small developing countries, primarily to determine whether this group of countries fares better in Internet usage compared to larger developing states. There are three important findings. First, income seems to be a major determinant of Internet usage and diffusion amongst all countries. High income countries, regardless of their size, have higher IPR rates than middle and lower income countries. Second, small developing countries, when excluding high income countries, have higher IPR rates than larger developing countries. And third, this study revealed that economic openness seems to foster the adopting and adapting of technology.