The Role of Entrepreneurship and Foreign Direct Investments on the Relation between Digital Divide and Economic Growth: A Structural Equation Model

Abstract

The digital divide is the non-distribution of technologic infrastructure use equiponderant within the society and an inequality in proportion to the tendency to technological use within the social categories. There is a significant correlation between the dissemination of information to the society and technology. Developments in the information and communication technologies affect the economic growth of countries. The possibility of accessing to the information strengthens the individual and this positively affects the entrepreneurship capacity of individual in the new fit system which the knowledge becomes the most important factor of production. This study tests the model which shows the relation between digital divide, economic growth, and entrepreneurship, patent granted and foreign direct investment. Internet penetration (IP) was used as the measurement criterion of digital divide. The hypotheses, suggested in the study, were tested through the method of structural equation model, and it was found that all of the hypotheses within the relation range, offered in the study model, were statistically significant.