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Factors Influencing the Diffusion of the Internet in China: 1997-2001
Unformatted Document Text:  18 education (higher than college) is. In a developing country where high-tech does not prevail, underprivileged people are often excluded in the new information networks (Singh, 2001). The privileged people in China, likewise everywhere in the world, are congregated in urban areas and have a high educational level. Similar to the most of developing countries in the world, the adoption of the Internet in China also starts from academic institutions and then spreads to other service industries. The GDP of the service industry is combined together with the number of schools and student enrollment. The regions that have a larger Internet population tend to have larger number of schools and bigger body of student enrollment. In factor analysis of all variables in China’s diffusion model, the scale of the service industry is a significant indicator of the popularity of the Internet diffusion. According to Roger’s theory on adoption of innovation, the adoption could be voluntary or involuntary. In China’s transformation process into a service economy, as with the economic pattern suggested by Castell (1996, 2000), more and more people will be forced to adopt the Internet in government administrations, companies and schools. Especially at most of higher education institutions, all students are required to master some computer and Internet skills, and school dormitories are equipped with an Internet connection. Three determinants are found in regression models to predict the popularity of Internet adoption: rate of home PC availability, Number of schools in the area and urban residents’ income. In the model for penetration rate, proportion of population with higher education, rate of home PC availability, the

Authors: Lin, Jia.
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18
education (higher than college) is. In a developing country where high-tech does
not prevail, underprivileged people are often excluded in the new information
networks (Singh, 2001). The privileged people in China, likewise everywhere in
the world, are congregated in urban areas and have a high educational level.
Similar to the most of developing countries in the world, the adoption of
the Internet in China also starts from academic institutions and then spreads to
other service industries. The GDP of the service industry is combined together
with the number of schools and student enrollment. The regions that have a
larger Internet population tend to have larger number of schools and bigger body
of student enrollment. In factor analysis of all variables in China’s diffusion
model, the scale of the service industry is a significant indicator of the popularity
of the Internet diffusion. According to Roger’s theory on adoption of innovation,
the adoption could be voluntary or involuntary. In China’s transformation process
into a service economy, as with the economic pattern suggested by Castell
(1996, 2000), more and more people will be forced to adopt the Internet in
government administrations, companies and schools. Especially at most of
higher education institutions, all students are required to master some computer
and Internet skills, and school dormitories are equipped with an Internet
connection.
Three determinants are found in regression models to predict the
popularity of Internet adoption: rate of home PC availability, Number of schools in
the area and urban residents’ income. In the model for penetration rate,
proportion of population with higher education, rate of home PC availability, the


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