Analysis Of Determinants Of Business Demand For Internet Access In Addiss Ababa

Recognizing the benefits of Information Communication Technologies (ICTs) inrngeneral and Internet in particular to the overall advancement of social, economicrnand politics of a country, developing countries are investing on networkrninfrastructures. However, the penetration level of the countries such as Ethiopiarnhas been very low which will hinder the country not to reap the benefits of therntechnologies. The purpose of this study was to identify the determinants ofrnInternet diffusion among business organization in Addis Ababa. Hence, a surveyrnwas conducted on a random sample of businesses and a logit model of Internetrnaccess was estimated. The major result of the estimated model indicate that thernlikelihood of access to the Internet by a firm is explained by the level of therneducation of the management, level of sales of the business and its openness torninternational trade. Furthermore, the descriptive analysis showed that among thernconnected businesses the use of Internet is limited to email and browsing, whilernadvanced electronics uses such as E-commerce, E-procurement, etc. are almostrnnon-existent

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