E-GOVERNMENT AND ECONOMIC GROWTH: A PANEL DATA ANALYSIS

Abstract

In recent years, the rising importance of e-government has gained
the attention of researchers and policy makers. The strategic objective of
e-government in a society is to facilitate the efficient provision of services
to its citizens. The purpose of this study is to explore e-government and
economic growth nexus, by employing large panel data of 154 countries
across the world from 2003 to 2010. The results reveal that e-government
is an important tool that drives economic growth of a country. The
empirical findings of random and fixed effects model show that
implementation of e-government causes high per capita GDP. The
dynamic panel data model by dealing with the problem of endogeneity
also confirms the validity of the results of FEM and REM. The main
findings are robust to control variables and different econometric
techniques.

JEL Classification: C23; H1; J24; O40