There are numerous potential mechanisms through which Internet use positively impacts economic outcomes. Access to the Internet increases the flow of information which reduces distances between people, businesses and nations, which in turn reduces transactions and transportation costs. Technological progress depends on the exchange of a composite measure of ideas and information. Social networks have strong effects on economic outcomes, especially in promoting innovation, and one of the fastest growing forms of Internet communication are websites that provide social networking services such as Facebook. With greater availability of information, provided by access to the Internet, institutions can become more efficient and transparent, leading to better governance. The use of the Internet can increase effective governance and lead to positive economic outcomes. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay In the context of this investigation, investing in the use of the Internet can be seen as complementary to both investments in human capital, as it makes workers more efficient by providing access to knowledge-enhancing skills and faster ways to create, disseminate and assimilate information and physical capital as it increases the productivity of physical capital. While this thesis does not itself offer a growth story, it provides evidence that Internet use has a positive impact on economic growth and other measures of development outcomes. Internet use affects economic development outcomes differently depending on the country's income level, policy recommendations should also vary based on the country's income level. Additional Internet use has a significant positive effect on GDP per capita and overall well-being as measured by the HDI on average in low-income countries. Additionally, foreign direct investment can be directed toward developing the infrastructure needed to enable greater Internet penetration, while encouraging foreign aid to address health and education programs. To the extent that the openness of the Internet can increase business participation in global value chains, this could have a significant positive impact. on the trend of national productivity. Participation in global value chains also helps strengthen an economy's ability to learn from the global productivity frontier. Please note: this is just an example. Get a custom paper from our expert writers now. Get a Custom Essay When we have a more connected population, graduating students and adults have more tools with which to enter the job market, find original and creative ways to make money or start their own business, and become consumers of goods and services online. All of this grows a stronger, more prosperous economy. Internet intermediaries provide growing social and economic benefits; whether through information, electronic commerce, communication/social networks, participatory networks or web services. Internet intermediaries ensure economic growth with new businesses and productivity gains through their contribution to the broader ICT sector and through their key role within the Internet ecosystem. They operate and maintain much of the Internet infrastructure, which now underpins economic and social activity globally, and are needed to help ensure there is continued sufficient investment in both physical and logical infrastructure to meet new network capacity demands.