Access to information and communication

Abstract

This paper attempts to estimate the determinants of Internet usage in South Africa in a theoreticallyplausible model. The three-step Engle Yoo estimation technique is applied. The results indicatethat the number of Internet users is dependent on access to personal computers as well as realwages and salaries. An error correction model is estimated and shocks are applied to the longrun variables. The shocks indicate that an increase in wages and salaries is necessary, but notsufficient, for an increase in Internet access. The South African government has implementednumerous policies to address the disparities that exist in the country concerning access toinformation and communication. Policies such as personal income tax relief and skills developmentplay an integral part in addressing limited access to the Internet, although these policies sometimescontradict the perceived objective.