Determinants of internet penetration: a cross- city analysis of China

Xiaofang Zhang, Qinghua Huang, Zhibo Zhou, Song Jiang, Ming Zhang, Xiding Chen
2014 Advances in Services Science and Services Information Technology   unpublished
To identify the determinants of cross-city disparities in Internet penetration, we examine a panel of 343 cities of China over the 2001-2007 period. Our strongest findings are that Internet use is associated with high levels of human capital, telephone density, and electricity consumption. We also find considerable evidence that Internet use is enhanced by high levels of income per capita. There is also some evidence for a negative role of the share of agriculture and the share of manufacturing
more » ... in GDP. Our results suggest that public investment in human capital, telecommunications infrastructure can mitigate the gap in Internet use.
doi:10.2495/sssit130121 fatcat:52nwxlu7mfawnc6v2je5dczuzi