How Taiwan’s Broadband Program Can Continue to Improve Internet Usage: Evidence from Panel Data

Abstract

Since 2002, Taiwan has given a significant amount of public subsidies to projects aimed at improving its information and communication infrastructure and these programs have a budget greater than 250 billion NTD. The goal of addressing the first-order digital divide is still in progress, whether the second-order digital divide exists has a groups effect is unclear? Is there any difference in the periods effect? The impact between groups and periods of panel data between 2011 and 2022 was evaluated using the least squares dummy variables model in this study. According to the empirical analysis, ten administrative districts, including Taipei City, are experiencing challenges in bridging the digital divide even though the digital gap and internet usage rates are not identical. Cable and mobile operators are crucial for boosting internet usage and closing the digital divide. The digital divide will worsen due to the economic gap caused by mobile device (e.g. smartphones, tablets) ownership compared to household characteristics. While the government continues to invest in broadband construction and improve internet access to reduce the first-order digital divide, regional differences in internet usage should be further explored, to clarify and address the problem of the second-order digital divide according to local conditions.