Determinants of Internet Transactions on Services: Evidence in Selected Countries

Abstract

Internet use on services has been evolving rapidly with the onset of digital technologies. Among the various public, private and welfare services, transportation and accommodation are the leading sectors that shift their transaction methods through online platforms. This paper discusses the various factors affecting internet transactions particularly on transportation and accommodation services across selected countries using fixed-effects regression model. The researchers used data for thirty countries in 2011 to 2017. Findings indicate that internet penetration rate, credit card transactions, GDP per capita, percentage of internet users in the population, trade openness, and secured internet servers significantly affect internet transactions on services.