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

Recognizing the benefits of Information Communication Technologies (ICTs)rnin general and Internet in particular to the overall advancement of social,rneconomic and politics of a country, developing countries are investing onrnnetwork infrastructures. However, the penetration level of the countries suchrnas Ethiopia has been very low which will hinder the country not to reap thernbenefits of the technologies. The purpose of this study was to identify therndeterminants of Internet diffusion among business organization in AddisrnAbaba. Hence, a .survey was conducted on a random sample of businessesrnand a logit model of Internet access was estimated . The major result of thernestimated model indicate that the likelihood of access to the Internet by a firmrnis explained by the level of the education of the management, level of sales ofrnthe business and its openness to international trade. Furthermore, therndescriptive analysis showed that among the connected businesses the use ofrnInternet is limited to email and browsing, while advanced electronics usesrnsuch as E-commerce, E-procurement, etc. are almost non-existent

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