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102        Carleen F. Maitland and Johannes M. Bauer



                  INDEPENDENT VARIABLES
            To explain and predict the diffusion of the Internet the independent
            variables suggested above will be used. Each of these variables is rep-
            resented by one or more measures. It is nearly impossible to find na-
            tional-level indicators for all countries in the world. The result is that
            one measure may be available for 85 countries while another is avail-
            able for 110. It may also be the case that those 85 are not all included
            in the 110 of the other variable. In general, the year of the measure
            was chosen based on the number of countries reporting the data in
            the 1990–1995 time period. To maximize the number of variables
            available for the analysis it was necessary to take a cross-sectional
            measure for each variable and these cross-sectional data were taken
            from different years. For example, the income measure is from 1994
            while the newspaper variable is from 1992. Although not ideal, the
            impact on the analysis should be minimal as the measure reflects the
            rank of country vis-à-vis the other countries and these rankings, in
            national level macroeconomic and demographic variables over a short
                                       12
            time period, are fairly stable. Also, use of multiple measures for one
            variable does not imply that scales will be formed. It merely adds
            flexibility in choosing a set of independent variables that are (1) not
            highly correlated and (2) represent the largest number of countries
            possible.
                The variables were gathered from a variety of sources. The
            source, year of the data, number of observations, and expected cor-
            relation with the dependent variable are presented in Table 2.

            Multivariate Analyses

            In the first part of this analysis the independent variables dis-
            cussed above will be regressed onto the dependent variable
            (START). The start variable was constructed by the number of time
            periods a country has had an Internet connection between 1991 and
            1997. For example, a country having adopted in January 1996 has
            a START value of four, compared to twelve for a country having
            adopted in January 1992. The data are available for 185 countries.
            Thus, this is an analysis of the impact of independent variables,
            which are assumed to be stable over this time, on the adoption tim-
            ing of countries.
                To begin the analysis, the correlation matrix of all independent
            variables was examined. Special attention was paid to the number of
            countries reporting data for each bivariate case. The correlations
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