Dynamic Relationships in Internet Usage: A PVAR Study on Per Capita Income and Digital Expenditure Influences

With the increasing digital expenses in recent years, marketerrs are still finding the optimal combination of advertising mix in digital space. Internet penetration or usage can be a pivotal information for the decision making. This empirical investigation aimed to explore the multifaceted connection between internet penetration, digital expenditure and per capita income using a panel VAR analysis with country specific estimates. The result indicates that changes in digital spending Granger-cause internet usage, while the direct impact of per capita income on usage is not significant. Country-wise analyses unveil nuanced patterns, highlighting variations in internet adoption dynamics.