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Does digitalization improve government effectiveness? Evidence from developing and developed countries

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  • Abdoul‐Akim Wandaogo

Abstract

This study aims to analyze the effect of digitalization on government effectiveness in developing and developed countries. It uses a panel methodology with data from 138 countries between 2006 and 2016. The results suggest that a government’s use of information and communication technologies (ICT) improves its effectiveness in both developing and developed countries. However, this effect is stronger in developed than in developing countries. Moreover, we find that the effect of aggregate ICT use by individuals, businesses, and government on overall government effectiveness is greater than that of individual use by each individually. The results are robust after several tests (reverse causality, dynamic effect, sensitivity analysis, heterogeneities, and alternative measurements). These results highlight the fact that governments could fully benefit from digitalization by adopting policies that promote access to and use of ICT at all levels of the economy, that is, the government itself, businesses, and individuals.

Suggested Citation

  • Abdoul‐Akim Wandaogo, 2022. "Does digitalization improve government effectiveness? Evidence from developing and developed countries," Applied Economics, Taylor & Francis Journals, vol. 54(33), pages 3840-3860, July.
    • Handle: RePEc:taf:applec:v:54:y:2022:i:33:p:3840-3860
    DOI: 10.1080/00036846.2021.2016590
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    Cited by:

    1. Andreea-Florentina Crăciun & Alexandra-Mădălina Țăran & Grațiela Georgiana Noja & Marilen Gabriel Pirtea & Raluca-Ioana Răcătăian, 2023. "Advanced Modelling of the Interplay between Public Governance and Digital Transformation: New Empirical Evidence from Structural Equation Modelling and Gaussian and Mixed-Markov Graphical Models," Mathematics, MDPI, vol. 11(5), pages 1-25, February.
    2. Laureti, Lucio & Costantiello, Alberto & Leogrande, Angelo, 2023. "The Role of Government Effectiveness in the Light of ESG Data at Global Level," MPRA Paper 115998, University Library of Munich, Germany.
    3. Ullah, Assad & Dogan, Mesut & Pervaiz, Amber & Ather Bukhari, Azaz Ali & Akkus, Hilmi Tunahan & Dogan, Husna, 2024. "The impact of digitalization, technological and financial innovation on environmental quality in OECD countries: Investigation of N-shaped EKC hypothesis," Technology in Society, Elsevier, vol. 77(C).

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