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Is e-Government a Driver to Enhance Entrepreneurship? An Empirical Investigation of European Countries

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  • Ha Le Thanh

    (Economics, National Economics University, Hanoi, Viet Nam)

Abstract

This paper investigates the influences of digital public services on the ease of setting up a new business in 28 European countries during the period of 2012–2019. The development of digital public services is reflected in business mobility and key enablers. The digitalization-entrepreneurship nexus is analyzed by using the panel corrected standard error (PCSE) model, while we employ the dynamic fixed effects estimator (DFE) used in the autoregressive distributed lag (ARDL) model to measure the short-run and long-run effects. Our results indicate that the online delivery of government services positively affects the density of entrepreneurship in a country. We find robust results utilizing various econometric techniques and adding further explanatory variables. However, the positive effects of offering public services online are only found in the long run. Using digital public services benefits the entrepreneurial sectors by reducing the time and costs required to start a new business. Notably, digital transformation in the public sector acts as a shield to protect enterprises by dampening the detrimental effects of uncertainty on entrepreneurship.

Suggested Citation

  • Ha Le Thanh, 2024. "Is e-Government a Driver to Enhance Entrepreneurship? An Empirical Investigation of European Countries," Entrepreneurship Research Journal, De Gruyter, vol. 14(3), pages 1311-1340.
    • Handle: RePEc:bpj:erjour:v:14:y:2024:i:3:p:1311-1340:n:1009
    DOI: 10.1515/erj-2021-0487
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    More about this item

    Keywords

    e-government; entrepreneurship; short-term and long-term effects; European countries;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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