# A Statistical Analysis of Industrial Penetration and Internet Intensity in Taiwan +
## 5 Results and Discussion
### Regression Model with Sample Selection Correction for 2-Digit Industries
On the contrary, traditional industries, such as (15) Pulp, Paper and Paper Products, and technology-intensive industries, such as (31) Other Transport Equipment, show manufacturers that are located in urban areas will use the internet to a greater extent than those that are located in rural areas. The variable of manufacturers' expenditure on computer equipment, \(computer1_{i}\), has no statistical impact on the expenditure of firms on internet use for most of the 2-digit industries, except for traditional industries, such as (16) Printing and Reproduction of Recorded Media, technology-intensive industries, such as (30) Motor Vehicles and Parts, (31) Other Transport Equipment, and basic industries, such as (21) Rubber Products, (22) Plastic Products, (25) Fabricated Metal Products. Similarly, computer\(2_{i}\) that is used to capture the contagion effect for internet technology in the same area shows no statistical impact on the expenditure of the firm on internet use for most of the 2-digit industries, except for traditional industries, such as (13) Leather, Fur and Related Products, and technology-intensive industries, such as (29) Machinery and Equipment and (31) Other Transport Equipment. The following discussion presents the probit estimates, as given by Equation (9), which estimates whether or not manufacturers adopt the internet for their business across 2-digit industries. The coefficient estimates are given in Table 8.  
The effect of the degree of industrial penetration (\(GHHI_{j}\)) in terms of whether or not manufacturers will use the internet shows differences across 2-digit industries. For traditional industries, such as (8) Food, (11) Textiles Mills, (13) Leather, Fur and Related Products, (14) Wood and Bamboo Products, technology-intensive industries, such as (29) Machinery and Equipment, (31) Other Transport Equipment, and basic industries, such as (25) Fabricated Metal Products, when the degree of industrial penetration is high, manufacturers will be more inclined to use the internet. For traditional industries, such as (15) Pulp, Paper and Paper Products, (16) Printing and Reproduction of Recorded Media, (32) Furniture, (33) Manufacturing Not Elsewhere Classified, technology-intensive industries, such as (26) Electronic Parts and Components, (30) Motor Vehicles and Parts, and basic industries, such as (22) Plastic Products, when the degree of industrial penetration is high, manufacturers will be less inclined to use the internet. However, industrial penetration will generally not affect whether manufacturers use the internet for most basic industries, such as (18) Chemical Material, (19) Chemical Products, (20) Medical Goods, (21) Rubber Products, (24) Basic Metal, traditional industries, such as the (9) Beverages, (12) Wearing Apparel and Clothing Accessories, (23) Non-metallic Mineral Product, and technology-intensive industries, such as (27) Computers, Electronic and Optical Products, (28) Electrical Equipment. The effect of degree of industrial concentration (\(HHI_{j}\)) in terms of whether manufacturers will use the internet is different across 2-digit industries. In terms of traditional industries, such as (11) Textiles Mills, (15) Pulp, Paper and Paper Products, (23) Non-metallic Mineral Products, (32) Furniture, technology-intensive industries, such as (29) Machinery and Equipment, and basic industries, such as (22) Plastic Products, when the degree of industrial concentration increases, manufacturers will be more inclined to use the internet. On the contrary, in the case of traditional industries, such as (08) Food, (12) Wearing Apparel and Clothing Accessories, (13) Leather, Fur and Related Products, and basic industries, such as (25) Fabricated Metal Products, when the degree of industrial concentration decreases, manufacturers will be more likely to use the internet. The effect of \(export_{i}\) is important for affecting the manufacturers' decision to use the internet for many 2-digit industries.