EXPLORING THE GAPS IN GLOBAL DIGITAL DIVIDES: EVIDENCE FROM A COMPOSITE DIGITAL DIVIDE INDEX

Abstract

In the twenty-first century, the global digital access and connectivity have become a major force behind global integration, economic advancement, and social development. Despite widespread internet access, mobile communications and broadband infrastructure, significant differences in digital connectivity and access, often referred to as the 'digital divide', persist across countries. This study aimed to identify the gaps in the first-order digital divides across countries from 2000 to 2023. Four key indicators namely fixed phone subscriptions, mobile cellular subscriptions, broadband subscriptions, and internet usage were combined into a composite Digitalization Index using Principal Component Analysis. Moreover this study utilized the secondary data obtained from the World Bank. Cluster analysis was employed to classify countries into low, medium, and high digitalization groups over time. The clustering results identified three district groups: cluster one with 1101 observations, cluster two with 755 observations, and cluster here with 902 observations. To better understand global digital inequality, this study provided a simple and comprehensive measure through the constructed Digital Divide Index. In addition to that, this study highlights the importance of constructing digital infrastructure in order for individuals to be able to participate in the digital economy globally.