This paper aims to use an exploratory approach to examine the effects of the first-level digital divide on socioeconomic development in Latin America and the Caribbean (LAC), focusing on broadband coverage, access, adoption and public policies.
The study uses a cross-sectional analysis of 33 countries in LAC. It includes a quantitative descriptive analysis to explore data patterns, a correlation analysis to examine statistical relationships between variables and an ordinary least squares regression analysis to understand how technological infrastructure and connectivity influence human development. Finally, t-tests are performed to determine the effectiveness of different public policy characteristics on internet usage in various countries.
The study finds a strong correlation between internet usage and socioeconomic development, showing that the percentage of individuals using the internet is a significant predictor of the human development index (HDI). The t-test analysis revealed no significant differences in internet usage based on public service policies and price controls. However, there was a significant difference in internet usage based on geographically differentiated offers, suggesting these policies effectively increase internet access.
For policymakers in LAC, policies should prioritize increasing internet usage over broadband coverage, as it significantly correlates with human development. In addition, tailored approaches that consider the unique needs of low-density population areas, such as geographically differentiated offers, are essential.
This research contributes to the existing literature by comprehensively analyzing the digital divide’s impact on socioeconomic development across all LAC countries. It combines data on broadband coverage, adoption and access with the impact of public policies on socioeconomic development in the region.
