Abstract
Our article is the first to empirically analyze the effects of digitalization on corruption prevalence by using a sample of 27 European countries over the period 2015-2020. We utilize the digital economy and society index capturing five diverse aspects of digital transformation: connectivity, human capital, use of the internet, integration of digital technology, and digital public services to reflect digital performance. We also consider influences of specific digital activities, such as online transactions, business digitization, e-Commerce, and e-Government. Our results indicate that digitalization, especially the use of internet services and digital public services reduced the prevalence of corruption in European countries. However, the effect of digital transformation only appears in the long run. Notably, we highlight the importance of online administrative procedures on combating corruption, especially during the Covid-19 pandemic.
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