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. ÖZET Dijital bölünme, teknolojik altyapının kullanımının toplum içerisinde eşit ağırlıklı ola-rak yayılmaması ve toplum kesimleri arasında teknoloji kullanımına yatkınlık oranındaki eşitsizliktir. Bilginin topluma yayılması ile teknoloji arasında önemli bir ilişki vardır. Bilgi ve 120

The Role of Foreign Direct Investment In The Relationship Between Global Innovation Index and Gross Domestic Product

“…In other words, foreign investments can be explained as the transition of investments made by real persons or legal entities from one country to another country or countries (Yücel et al, 2019). Owning 10% or more of ordinary shares with a voting right is a criterion for proving the existence of a foreign direct investment relationship (Civelek et al, 2016). Furthermore, it is a mechanism that activates both domestic and international competition (Çelebi et al, 2015).…”

“…With the increase in international economic activity during recent years, Foreign Direct Investment (FDI) has also surged. FDI is a form of cross-border investment in which a company or an individual in a country possesses the control or significant authority over a company in another country by establishing a wholly owned subsidiary, acquisition of a local organization or establishing a joint venture (Civelek et al, 2016). The primary difference between foreign direct investment and foreign indirect investment is that foreign indirect investment includes portfolio investments made through the purchase of stocks and bonds and it does not have any control over the place of investment (Wang and Li, 2018) The contribution of FDI to competition, economic development, transfer of practice and economic growth has been shown in previous studies (Pelinescu and Radulescu, 2009;Pece et al, 2015;Klein et al, 2001;Balasubramanyam et al, 1999).…”