Examining the global influence of e-governance on corruption: a panel data analysis

Abstract

This study analyzes the impact of e-governance on corruption using a panel dataset comprising 110 countries over the period from 2003 to 2021. The specific focus of the research is on the relationship between the E-government Development Index (EGDI) and its four components, namely the Online Service Index (OSI), Human Capital Index (HCI), Telecommunication Infrastructure Index (TII), and E-Participation Index (EPI), and their effects on the Corruption Perceptions Index (CPI). To examine these relationships, the empirical analysis employs a fixed effect model, which is a suitable statistical approach for panel data analysis. The findings of the study reveal significant negative associations between the EGDI, OSI, HCI, and TII with corruption levels across countries worldwide. This implies that higher levels of e-government development, online service provision, human capital, and telecommunication infrastructure are associated with lower corruption perceptions. However, the EPI does not demonstrate a statistically significant relationship with the CPI. Based on these results, the paper provides recommendations for governments to prioritize two key areas. Firstly, governments should invest in the development of e-government infrastructure to enhance transparency, accountability, and efficiency in public administration, thereby reducing corruption. Secondly, initiatives aimed at enhancing public awareness and understanding of e-governance should be prioritized, as they contribute to increased citizen engagement and participation, which can ultimately lead to improved governance practices and reduced corruption levels.