An econometric analysis of Internet adoption in Latin America and the Caribbean: 1996--2000

Latin America and the Caribbean (LAC) lag significantly behind North America, Europe and Asia in its adoption and use of the Internet and other forms of information and communications technology. Within the region itself, there are significant variations in Internet use and access. What factors explain cross-country differences in Internet adoption in the LAC region? Does government policy with respect to privatization, regulation and competition have an impact on increased penetration levels?; This dissertation uses two models: a cross-sectional model for the year 2000, and a fixed-effects model for the 1996--2000 period to provide answers to these questions. Using both the number of Internet hosts and the number of Internet users as indicators of Internet penetration and access, it examines the role of infrastructure, institutions, socio-economic and policy variables in determining access and penetration levels. It finds that infrastructure access and government policy with respect to competition in the telecommunications sector significantly and robustly explain cross-country differences in the region.