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100        Carleen F. Maitland and Johannes M. Bauer


            where possible, addresses issues concerning compatibility of data
            sources.

                  DEPENDENT VARIABLE

                The growth of the Internet can be measured in a variety of ways
            including changes in the amount of network traffic it generates, the
            number of hits on web sites, estimates of the number of users, and
            the number of computers it connects. Methods of measuring its
            growth and impact are constantly being improved, with companies
            racing to establish their measurement system as the most reliable
            and accurate. The global nature of this study creates a unique re-
            quirement for measuring Internet growth. The measure of growth
            must be available for a wide range of countries including those in the
            developing world. The most widely reported statistic on growth is
            that of host counts. 10
                Although Internet host counts do not give accurate statistics on
            the number of users or their demographics, they do provide certain
            advantages. Data on the number of Internet hosts have been col-
            lected since the early eighties, and this consistency of measurement
            is one the method’s main benefits (Rickard 1995). Counting the num-
            ber of Internet hosts, which represent access to the Internet as op-
            posed to usage or number of users, provides an estimate of the
            minimum number of Internet users. To create estimates beyond a
            minimum number a factor of users-per-host is required. This ratio is
            approximately seven in the OECD countries and is expected to de-
            cline, assuming extensive diffusion over several years, to one. By
            comparing estimates of the number of users gathered through ran-
            dom telephone survey studies with the minimum number of users
            from host counts, estimates of Internet access have improved, al-
            though no truly accurate measure exists (Lotter 1998).
                Therefore, in the following analysis an “adoption” is considered
                                              11
            the addition of a host to the Internet. The data on the number of In-
            ternet hosts both globally and on a country-by-country basis were ob-
            tained from the Network Wizards web site (<http://www.nw.com/>),
            the most frequently cited source of Internet diffusion data (Press
            1997). Although the Internet had its start back in 1969 as ARPANET
            and evolved into Bitnet in 1981 (Leiner et al. 1998), the data used in
            this study begin in 1991 and are measured in six-month increments.
            The reason for starting in 1991 is although data on the number of In-
            ternet hosts prior to 1991 exist, it was not until 1991 that hosts were
            attributed to a particular top level domain name representing their
            country of origin. Attributing hosts to particular domain names
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