Does government digitization contribute to economic growth? Empirical evidence from 109 countries
In the digital age, governments worldwide are increasingly turning to digitization to enhance efficiency and foster economic growth. This study investigates the impact of government digitization on economic growth, addressing the pressing issue of how digital transformations within the public secto...
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| Format: | Article |
| Language: | English |
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Vilnius Gediminas Technical University
2025-07-01
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| Series: | Technological and Economic Development of Economy |
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| Online Access: | https://journals.vilniustech.lt/index.php/TEDE/article/view/24060 |
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| author | Yemin Ding Lee Chin Farhad Taghizadeh-Hesary Xiaohan Yan |
| author_facet | Yemin Ding Lee Chin Farhad Taghizadeh-Hesary Xiaohan Yan |
| author_sort | Yemin Ding |
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In the digital age, governments worldwide are increasingly turning to digitization to enhance efficiency and foster economic growth. This study investigates the impact of government digitization on economic growth, addressing the pressing issue of how digital transformations within the public sector can drive economic growth. First, we empirically estimate panel data from 2002 to 2021 across 109 countries using multiple statistical methods, consistently supporting that government digitization can significantly promote economic growth. Subsequently, mechanism tests are conducted using two fixed effect models containing interaction terms, revealing that government digitization can foster economic growth by curbing corruption and reducing the time businesses need to access public services. Furthermore, heterogeneity analysis confirms the moderating effects of telecommunications infrastructure, basic education popularization, natural resource abundance, government efficiency, democracy, and ruling party ideology on the relationship between government digitization and economic growth. Lastly, quantile regression reveals a nuanced pattern, indicating that as a country’s economic development level increases, the promoting effect of government digitization on economic growth initially rises before declining. These findings provide new insights for governments worldwide seeking economic growth.
First published online 04 July 2025
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| format | Article |
| id | doaj-art-ce81b6c795bf4b99b2a6863107e04bcc |
| institution | Kabale University |
| issn | 2029-4913 2029-4921 |
| language | English |
| publishDate | 2025-07-01 |
| publisher | Vilnius Gediminas Technical University |
| record_format | Article |
| series | Technological and Economic Development of Economy |
| spelling | doaj-art-ce81b6c795bf4b99b2a6863107e04bcc2025-08-20T03:50:12ZengVilnius Gediminas Technical UniversityTechnological and Economic Development of Economy2029-49132029-49212025-07-0110.3846/tede.2025.24060Does government digitization contribute to economic growth? Empirical evidence from 109 countriesYemin Ding0https://orcid.org/0000-0002-3259-8065Lee Chin1https://orcid.org/0000-0002-8651-2204Farhad Taghizadeh-Hesary2Xiaohan Yan3College of Business, Yancheng Teachers University, Yancheng, Jiangsu, ChinaSchool of Business and Economics, Universiti Putra Malaysia, Serdang, Selangor, Malaysia; Department of Econometrics, Tashkent State University of Economics, Tashkent, UzbekistanTOKAI Research Institute for Environment and Sustainability (TRIES), Tokai University, Tokyo, Japan; Adnan Kassar School of Business, Lebanese American University, Beirut, LebanonSchool of Mathematics and Statistics, Ningxia University, Yinchuan, Ningxia, China In the digital age, governments worldwide are increasingly turning to digitization to enhance efficiency and foster economic growth. This study investigates the impact of government digitization on economic growth, addressing the pressing issue of how digital transformations within the public sector can drive economic growth. First, we empirically estimate panel data from 2002 to 2021 across 109 countries using multiple statistical methods, consistently supporting that government digitization can significantly promote economic growth. Subsequently, mechanism tests are conducted using two fixed effect models containing interaction terms, revealing that government digitization can foster economic growth by curbing corruption and reducing the time businesses need to access public services. Furthermore, heterogeneity analysis confirms the moderating effects of telecommunications infrastructure, basic education popularization, natural resource abundance, government efficiency, democracy, and ruling party ideology on the relationship between government digitization and economic growth. Lastly, quantile regression reveals a nuanced pattern, indicating that as a country’s economic development level increases, the promoting effect of government digitization on economic growth initially rises before declining. These findings provide new insights for governments worldwide seeking economic growth. First published online 04 July 2025 https://journals.vilniustech.lt/index.php/TEDE/article/view/24060government digitizationeconomic growthCobb-Douglas production functionresource cursegovernment efficiency |
| spellingShingle | Yemin Ding Lee Chin Farhad Taghizadeh-Hesary Xiaohan Yan Does government digitization contribute to economic growth? Empirical evidence from 109 countries Technological and Economic Development of Economy government digitization economic growth Cobb-Douglas production function resource curse government efficiency |
| title | Does government digitization contribute to economic growth? Empirical evidence from 109 countries |
| title_full | Does government digitization contribute to economic growth? Empirical evidence from 109 countries |
| title_fullStr | Does government digitization contribute to economic growth? Empirical evidence from 109 countries |
| title_full_unstemmed | Does government digitization contribute to economic growth? Empirical evidence from 109 countries |
| title_short | Does government digitization contribute to economic growth? Empirical evidence from 109 countries |
| title_sort | does government digitization contribute to economic growth empirical evidence from 109 countries |
| topic | government digitization economic growth Cobb-Douglas production function resource curse government efficiency |
| url | https://journals.vilniustech.lt/index.php/TEDE/article/view/24060 |
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