The Influence of ICT on the Control of Corruption

Abstract

Corruption might occur in many places within the government. Information and Communication Technology (ICT) can be used to create a more open and transparent government enabling the Control of Corruption (CoC). The research presented in this paper aims to analyze the effect of ICT on CoC in open government. Using panel data of ASEAN countries over 33 years from 1984 to 2016, this study examined the data utilizing panel Auto-Regressive Distributed Lags (ARDL). The results of this study reinforce the existing literature on the positive effects of ICT on CoC. However, the assumed relationship is more complicated than often assumed. This study shows the presence of a quadratic (non-linear) inverted u-shaped relationship between the ICT development and CoC, which implies that there is no further opportunity for ICT alone to reduce corruption once a threshold is reached. ICT might even be used to facilitate corruption. Hence, ICT needs to be complemented by institutional and organizational measures and education to fight corruption.

Technology and control of corruption in Africa

“…ICT computed as a composite indicator shows that technology facilitates control of corruption in Africa. The findings are supported by those of Darusalam et al (2021), Tang et al (2019) and Ali and Sassi (2016), who employed ICT indicators as measures of technology, such as internet penetration and mobile phone. From the findings of the study, we can conclude that technology indicators have mixed effects on the control of corruption, which conforms with the results of Charoensukmongkol and Moqbel (2014).…”

“…However, due to the vast literature in support of technology as a means of limiting corruption practices, another strand of literature demonstrates the limits of technology as a means of ensuring transparency in public transactions. Darusalam et al (2021) conducted a study to investigate the effect of ICT on corruption control in Asian countries over 33 years ranging from 1984 to 2016 and reveal a non‐linear inverted u‐shaped relationship between the ICT and control of corruption, which indicates that ICT in these countries does not reduce the rate of corruption. The findings of Darusalam et al (2021) further reveal that there are no opportunities for ICT alone to combat corruption and need to be complemented by education and government effectiveness.…”

“…His results indicate that ICT diffusion is effective with education and training. The existing literature on the effect of technology on the control of corruption has limited ICT indicators to mobile phone penetration (Darusalam et al, 2021), internet penetration (Ali & Sassi, 2016) and neglected fixed telephone and fixed broadband. There is the absence of a composite indicator that considers all possible measures of ICT in the existing literature.…”

“…The dependent variable of the study is the control of corruption. The adoption of control of corruption from the WGI as a measure of control of corruption is inspired by the works of Darusalam et al (2021) and Androniceanu et al (2021). Control of corruption measures the quality of governance to combat and prevent corruption.…”

“…We expect ICT to contribute to the combat of corruption in Africa. Darusalam et al (2021) and Ghaniy and Hastiadi (2017) also employed these indicators to measure growth in technology.…”