Prior research shows that the internet has enhanced information dissemination and facilitated economic development. However, the impact of the internet is not evenly distributed among countries or within countries of the world. While the internet facilitates an increase in economic activity, the economic reward from that activity is not evenly distributed to all segments of a society, which leads to income inequality. If income inequality is perceived as excessive, that may cause the population’s life satisfaction to go downward. Findings indicate a negative relationship between internet usage and income inequality, but a positive relationship between internet usage and life satisfaction. Thus, decreases in income inequality and increases in happiness are both associated with increases in internet usage.

This paper provides a multinational analysis of the relationship of internet activity to economic and social metrics. Analyses were made of 129 countries, all those with complete data for internet usage, economic activity, economic freedom, gender equality, and social progress. The internet facilitates economic development in myriad ways, such as businesses can efficiently offer their goods and services online. Findings indicate that countries with higher levels of Internet usage are associated with significantly higher levels of economic activity, Economic freedom gives citizens the right to control their own labor and property. Countries with higher levels of internet usage are associated with significantly higher levels of economic freedom. Gender equality and social progress are valuable components of a vibrant economy. Findings of this study show that countries having higher levels of internet usage are associated with significantly higher levels of gender equality and social progress.