Are electronic government innovations helpful to deter corruption? Evidence from across the world

Abstract

Electronic government innovations have been a critical development in public administration in recent years. Many countries have implemented e‐government policies to enhance efficiency and transparency and combat corruption. This paper examines the impact of e‐government on corruption using longitudinal data for more than 170 countries from 2002 to 2020. The empirical results suggest that e‐government serves as a deterrent to corrupt activities. We analyse which e‐government domains affect corruption, which types of corruption are more affected by e‐government and the circumstances under which e‐government is more effective in reducing corruption. The empirical results suggest that online service completion and e‐participation are important features of e‐government as an anticorruption tool. Evidence suggests that e‐participation reduces corrupt legislature activities, public sector theft, executive bribery, and corrupt exchanges. The potential of e‐government to deter corruption is higher in countries where corruption is moderate or high and economic development is lower. Higher levels of GDP per capita, foreign direct investment, and political rights are also associated with lower levels of corruption.