Factors Affecting Internet Transactions: Case of Services Industry

Abstract

Internet use has been evolving rapidly with the onset of digital technologies. Among the various public, private and welfare industries, transportation and accommodation are the leading services sectors that shift their transaction methods through online platforms. This paper examines the various factors affecting internet transactions particularly on transportation and accommodation services across selected countries using fixed-effects regression model. The researchers used data for thirty countries in 2011 to 2017. Findings indicate that internet penetration rate, credit card transactions, GDP per capita, percentage of internet users in the population, trade openness, and secured internet servers significantly affect internet transactions on services.