The demographic and economic features: the nexus with internet use

Abstract

The goal of this study was to examine the nexus between demographic dividend type and economic features with internet use. The data source was from the World Development Indicator of the World Bank. The unit analysis was country. The panel data analysis method were used for the examination, employing fixed effects regression models using country income level, country regional group, and year as identifiers. The random effects regression model, pooled least square model, and static generalized method of moments were utilized for robustness checks. The dependent variable was the percentage of population using the internet. The independent variables consisted of demographic and economic variables. The demographic variable was the demographic dividend type, while the economic variables were access to electricity, GDP, inflation rate, and foreign direct investment. The results of fixed effects regression indicate that after controlling for the economic features, higher internet use in a country was associated with late- and post-demographic dividend type. Higher internet use was also associated with higher access to electricity, higher GDP, lower inflation rate, and higher foreign direct investment inflow. Robustness checks using random-effects and pooled least square models, using fixed-effects model by country income level, using two-stage least square, and using second stage regression by G20 and non-G20 country group division and year, similarly gave consistent results. The association of internet use with the demographic and economic features may imply that population-based and economic development program should be enhanced toward the favorable ones that increase internet usage among the population.