Journal of Contemporary Issues in Business and Government

Abstract

The advent of internet and telecommunication technology has led to the emergence
of digital footprint around the world. Subsequently there have been studies linked to internet
usage and socioeconomic development. The difference in internet usage among different
countries has also been identified as digital divide. Policy makers and government are
concerned about internet and telecommunication usage as drivers of digital economy for
sustainable development goals. However, not all countries are similar in their level of internet
penetration and usage of advanced technologies. Socioeconomic barriers prevalent in different
countries may prevent much of the population engagement in different information and
communication technologies. Therefore it becomes imperative to study from a wider
perspective whether the economic development of nations influence the usage of digital
technologies.
This paper examines the impact of different economic development indicators on internet
usage by applying different panel data analysis methods. The economic indicators evaluated
here are GDP growth, proportion of salaried workers, unemployment levels, broad money,
import of technology equipment, capital growth, mobile subscription, employment and
income levels. All the factors except capital growth are having statistical significance with
proportion of internet usage. Further, at different income levels the proportion of salaried
workers has a significant influence on internet usage. The study reveals the importance of
economic development in improving the digital footprint among different nations.