This paper analyzes the process of Internet diffusion across the world using a panel of 199 countries during [1990][1991][1992][1993][1994][1995][1996][1997][1998][1999][2000][2001][2002][2003][2004]. The authors group countries in two categories-low and high-income countries-and show that the Internet diffusion process is well characterized by an S-shape curve for both groups. Low-income countries display a steeper diffusion curve that is equivalent to a right shift of the diffusion curve for high-income countries. The estimated diffusion curves provide evidence of a "catching-up" process, although a very slow This paper-a product of the Sustainable Development Department in the Latin America and the Caribbean Region-is part of a larger effort in the department to understand the determinants for performance in the infrastructure sectors. Policy Research Working Papers are also posted on the Web at http://econ.worldbank.org. The authors may be contacted at landres@worldbank.org and tserebrisky@worldbank.org.one. The paper explores the determinants of Internet diffusion at the country level and across the same income groups. The most novel finding is that network effects seem to be crucial-the number of Internet users in a country in a given year is positively associated with the number of users in the previous year. The findings also show that the degree of competition in the provision of Internet service contributes positively to its diffusion, and there are significant positive language externalities.

A consensus exists in the literature on the strong link between air connectivity and economic growth and development. The need for connecting people and markets is part of national policies in different territories. The existence of remote areas, that is, those that under strict market criteria would not be transport supplied due to lack of commercial profitability, has led to the development of different public policies aimed to support air connectivity in regions where commercial airline operations are not viable. This paper provides a mapping of existing policies applied worldwide to provide air connectivity to remote areas, and critically reviews policies promoting air connectivity, including: 1) route-based policies; 2) passenger-based policies; 3) airline-based policies; and 4) airport-based policies. This effort is the first to compile and critically analyze all the existing alternatives to provide air connectivity in remote areas and to report on experiences worldwide. Moreover, we develop a novel taxonomy of existing public policies when it comes to providing air connectivity to remote areas. After reviewing different policy options and instruments applied globally, the paper ends with a policy discussion.

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The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

This article develops a theoretical framework to analyze options for financing infrastructure in developing countries. We build a basic model that gives motivations for using a combination of public finance, private debt and private equity. The model is then extended in a number of ways to examine a variety of factors that are important for developing countries when considering financing choices. We focus in particular on key institutional weaknesses that are often important for infrastructure investment. Overall, we show that such weaknesses can be key in determining financing choices, but that they do not all push in the same direction. Financing schemes must therefore be adapted to consider the institutional limitations that are most pertinent in any given context. JEL classifications: G32, G38, H54, O16