The nexus of E-government and increased productivity relative to income level comparison
Abstract
Purpose – this study aims to determine the influence of E-government on productivity in the case of different countries comparing by income level.
Research methodology – static (fixed and random) and dynamic (GMM) panel regression.
Findings – a disaggregated analysis reveals that middle-income countries are driving global productivity growth by implementing ICTs infrastructure in the public sector.
Research limitations – this study focuses on severe developed and developing economies, whereas each country may not benefit from E-government implementation as gains might be offset with the enormous costs of implementation.
Practical implications – the government may rely more on online services in the provision of its responsibilities because it enhances the efficiency of public sectors.
Originality/Value – the study is a novel measure of E-government that covers additional multiple dimensions.
Keyword : electronic government, productivity growth performance, ICTs, trust, developed and developing countries, panel data
How to Cite
Faid, G., Tariq, M. M., Ishtiaq, A., Zeynvand, V. L., Meyer, D. F., & Máté, D. (2020). The nexus of E-government and increased productivity relative to income level comparison. Business, Management and Economics Engineering, 18(1), 88-105. https://doi.org/10.3846/bme.2020.12067
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
Andersen, K. N., Henriksen, H. Z., Medaglia, R., Danziger, J. N., Sannarnes, M. K., & Enemærke, M. (2010). Fads and facts of E-government: A review of impacts of E-government (2003–2009). International Journal of Public Administration, 33(11), 564–579. https://doi.org/10.1080/01900692.2010.517724
Andersen, T. B. (2009). E-Government as an anti-corruption strategy. Information Economics and Policy, 21(3), 201–210. https://doi.org/10.1016/j.infoecopol.2008.11.003
Arellano, M., & Bond, S. (1991). Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. The Review of Economic Studies, 58(2), 277. https://doi.org/10.2307/2297968
Bai, C.-E., & Yuen, C.-W. (2002). Technology and the new economy. MIT Press. https://doi.org/10.7551/mitpress/6686.001.0001
Baltagi, H. (2013). Econometric analysis of panel data. John Wiley & Sons. https://doi.org/10.1002/9781118445112.stat03160
Barro, R. J. (1991). Economic growth in a cross section of countries. The Quarterly Journal of Economics, 106(2), 407. https://doi.org/10.2307/2937943
Batchelor, S., Scott, N., & Woolnough, D. (2005). Good practice paper on ICTs for economic growth and poverty reduction. The DAC Journal, 6(3).
Bekkers, V., & Homburg, V. (2007). The myths of E-government: Looking beyond the assumptions of a new and better government. Information Society, 23(5), 373–382. https://doi.org/10.1080/01972240701572913
Bhuiyan, S. H. (2010). E-government in Kazakhstan: Challenges and its role to development. Public Organization Review, 10(1), 31–47. https://doi.org/10.1007/s11115-009-0087-6
Chen, A. J., Pan, S. L., Zhang, J., Huang, W. W., & Zhu, S. (2009). Managing e-government implementation in China: A process perspective. Information and Management, 46(4), 203–212. https://doi.org/10.1016/j.im.2009.02.002
Comin, D., & Hobijn, B. (2004). Cross-country technology adoption: making the theories face the facts. Journal of Monetary Economics, 51(1), 39–83. https://doi.org/10.1016/j.jmoneco.2003.07.003
Czernich, N., Falck, O., Kretschmer, T., & Woessmann, L. (2011). Broadband Infrastructure and Economic Growth. Economic Journal, 121(552), 505–532. https://doi.org/10.1111/j.1468-0297.2011.02420.x
Goergen, M., Chahine, S., Brewster, C., & Wood, G. (2013). Trust, owner rights, employee rights and firm performance. Journal of Business Finance & Accounting, 40(5–6), 589–619. https://doi.org/10.1111/jbfa.12033
Haigh, N. (2004). Linkages between eBusiness and sustainability outcomes: An exploratory study. Innovation, 6(2), 236–246. https://doi.org/10.5172/impp.2004.6.2.236
International Telecommunication Union. (2019). Measuring digital development Facts and figures 2019. Retrieved January 21, 2020, from https://www.itu.int/en/ITU-D/Statistics/Pages/facts/default.aspx
Kpodar, K., & Andrianaivo, M. (2011). ICT, financial inclusion, and growth evidence from African countries. (IMF Working Papers, Vol. 11). https://doi.org/10.5089/9781455227068.001
Krishnan, S., & Teo, T. S. H. (2012). Moderating effects of governance on information infrastructure and e-government development. Journal of the American Society for Information Science and Technology, 63(10), 1929–1946. https://doi.org/10.1002/asi.22660
Levine, R. (1997). Financial development and economic growth: Views and agenda. Journal of Economic Literature, 35(2), 688–726. https://doi.org/10.1596/1813-9450-1678
Ma, L., Chung, J., & Thorson, S. (2005). E-government in China: Bringing economic development through administrative reform. Government Information Quarterly, 22(1), 20–37. https://doi.org/10.1016/j.giq.2004.10.001
Mahyideen, J. M., Ismail, N. W., & Hook, L. S. (2012). A pooled mean group estimation on ICT infrastructure and economic growth in ASEAN-5 countries. International Journal of Economics and Management, 6(2), 360–378.
Majeed, M. T. (2018). Information and communication technology (ICT) and environmental sustainability in developed and developing countries. Pakistan Journal of Commerce and Social Science, 12(3), 758–783.
Majeed, M. T., & Shah, A. (2018). An empirical analysis of economic performance of Asian economies: The role of electronic government. Review of Economics and Development Studies, 4(1), 91–102. https://doi.org/10.26710/reads.v4i1.284
Mankiw, N. G., Romer, P. M., & Weil, D. N. (1992). A contribution to the empirics of economic growth author. The Quarterly Journal of Economics, 107(2), 407–437. https://doi.org/10.2307/2118477
Maurseth, P. B. (2018). The effect of the Internet on economic growth: Counter-evidence from crosscountry panel data. Economics Letters, 172(1), 74–77. https://doi.org/10.1016/j.econlet.2018.08.034
Meyer, D. F., Masehla, T. M., & Kot, S. (2017). The relationship between economic growth and economic development: A regional assessment in south africa. Journal of Advanced Research in Law and Economics, 8(4), 1377–1385.
Morawczynski, O., & Ngwenyama, O. (2007). Unraveling the impact of investments in ICT, Education and health on development: An analysis of archival data of five West African countries using regression splines. The Electronic Journal of Information Systems in Developing Countries, 29(1), 1–15. https://doi.org/10.1002/j.1681-4835.2007.tb00199.x
Nagy, J., Oláh, J., Erdei, E., Máté, D., & Popp, J. (2018). The role and impact of Industry 4.0 and the internet of things on the business strategy of the value chain – The case of Hungary. Sustainability, 10(10), 3491. https://doi.org/10.3390/su10103491
Ngwenyama, O., Andoh-Baidoo, F. K., Bollou, F., & Morawczynski, O. (2006). Is There a relationship between ICT, health, education and development? An empirical analysis of five West African Countries from 1997–2003. The Electronic Journal of Information Systems in Developing Countries, 23(1), 1–11. https://doi.org/10.1002/j.1681-4835.2006.tb00150.x
Oláh, J., Sadaf, R., Máté, D., & Popp, J. (2019a). The influence of the management success factors of logistics service providers on firms’ competitiveness. Polish Journal of Management Studies, 17(1), 175–193. https://doi.org/10.17512/pjms.2018.17.1.15
Oláh, J., Yusmar, A. H., Máté, D., Novotny, Á., Popp, J., Lakner, Z., & Kovács, S. (2019b). A trust approach to the financial performance of information and communications technology enterprises. Polish Journal of Management Studies, 20(1), 332–343.
Pereira, A. C., & Romero, F. (2017). A review of the meanings and the implications of the Industry 4.0 concept. Procedia Manufacturing, 13, 1206–1214. https://doi.org/10.1016/j.promfg.2017.09.032
Piatkowski, M. (2006). Can information and communication technologies make a difference in the development of transition economies? Information Technologies and International Development, 3(1), 39–53. https://doi.org/10.1162/itid.2006.3.1.39
Poór, J., Juhász, T., Machová, R., Bencsik, A., & Bilan, S. (2018). Knowledge management in human resource management: Foreign-owned subsidiaries’ practices in four CEE countries. Journal of International Studies, 11(3), 295–308. https://doi.org/10.14254/2071-8330.2018/11-3/23
PWT. (2018). Penn World Table 9.0. https://doi.org/10.15141/S5J01T
Rodríguez-Ardura, I., & Meseguer-Artola, A. (2010). Toward a longitudinal model of E-commerce: Environmental, Technological, and organizational drivers of B2C adoption. The Information Society, 26(3), 209–227. https://doi.org/10.1080/01972241003712264
Ślusarczyk, B. (2019). Industry 4.0 – Are we ready? Polish Journal of Management Studies, 17(1), 232– 248. https://doi.org/10.17512/pjms.2018.17.1.19
Teo, T. S. H., Srivastava, S. C., & Jiang, L. (2009). Trust and electronic government success: An empirical study. Journal of Management Information Systems, 25(3), 99–131. https://doi.org/10.2753/MIS0742-1222250303
The World Bank. (2019). World Development Indicators | DataBank. Retrieved February 1, 2019, from https://databank.worldbank.org/data/source/world-development-indicators
Tolbert, C. J., & Mossberger, K. (2006). The effects of E-government on trust and confidence in government. Public Administration Review, 66(3), 354–369. https://doi.org/10.1111/j.1540-6210.2006.00594.x
UNDESA. (2003). World Public Sector Report 2003: E-government at the Crossroads.
United Nations. (2019). United Nations Department of Social and Economic Affairs > Research > UN e-Government Surveys. Retrieved January 21, 2020, from https://publicadministration.un.org/en/Research/UN-e-Government-Surveys
Welch, E. W., Hinnant, C. C., & Moon, M. J. (2005). Linking citizen satisfaction with e-government and trust in government. Journal of Public Administration Research and Theory, 15(3), 371–391. https://doi.org/10.1093/jopart/mui021
Weyer, S., Schmitt, M., Ohmer, M., & Gorecky, D. (2015). Towards industry 4.0 – Standardization as the crucial challenge for highly modular, multi-vendor production systems. IFAC-PapersOnLine, 28(3), 579–584. https://doi.org/10.1016/j.ifacol.2015.06.143
Zhao, F., Wallis, J., & Singh, M. (2015). E-government development and the digital economy: a reciprocal relationship. Internet Research, 25(5), 734–766. https://doi.org/10.1108/IntR-02-2014-0055
Zhu, K., Kraemer, K., & Xu, S. (2003). Electronic business adoption by European firms: a cross-country assessment of the facilitators and inhibitors. European Journal of Information Systems, 12(4), 251–268. https://doi.org/10.1057/palgrave.ejis.3000475
Andersen, T. B. (2009). E-Government as an anti-corruption strategy. Information Economics and Policy, 21(3), 201–210. https://doi.org/10.1016/j.infoecopol.2008.11.003
Arellano, M., & Bond, S. (1991). Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. The Review of Economic Studies, 58(2), 277. https://doi.org/10.2307/2297968
Bai, C.-E., & Yuen, C.-W. (2002). Technology and the new economy. MIT Press. https://doi.org/10.7551/mitpress/6686.001.0001
Baltagi, H. (2013). Econometric analysis of panel data. John Wiley & Sons. https://doi.org/10.1002/9781118445112.stat03160
Barro, R. J. (1991). Economic growth in a cross section of countries. The Quarterly Journal of Economics, 106(2), 407. https://doi.org/10.2307/2937943
Batchelor, S., Scott, N., & Woolnough, D. (2005). Good practice paper on ICTs for economic growth and poverty reduction. The DAC Journal, 6(3).
Bekkers, V., & Homburg, V. (2007). The myths of E-government: Looking beyond the assumptions of a new and better government. Information Society, 23(5), 373–382. https://doi.org/10.1080/01972240701572913
Bhuiyan, S. H. (2010). E-government in Kazakhstan: Challenges and its role to development. Public Organization Review, 10(1), 31–47. https://doi.org/10.1007/s11115-009-0087-6
Chen, A. J., Pan, S. L., Zhang, J., Huang, W. W., & Zhu, S. (2009). Managing e-government implementation in China: A process perspective. Information and Management, 46(4), 203–212. https://doi.org/10.1016/j.im.2009.02.002
Comin, D., & Hobijn, B. (2004). Cross-country technology adoption: making the theories face the facts. Journal of Monetary Economics, 51(1), 39–83. https://doi.org/10.1016/j.jmoneco.2003.07.003
Czernich, N., Falck, O., Kretschmer, T., & Woessmann, L. (2011). Broadband Infrastructure and Economic Growth. Economic Journal, 121(552), 505–532. https://doi.org/10.1111/j.1468-0297.2011.02420.x
Goergen, M., Chahine, S., Brewster, C., & Wood, G. (2013). Trust, owner rights, employee rights and firm performance. Journal of Business Finance & Accounting, 40(5–6), 589–619. https://doi.org/10.1111/jbfa.12033
Haigh, N. (2004). Linkages between eBusiness and sustainability outcomes: An exploratory study. Innovation, 6(2), 236–246. https://doi.org/10.5172/impp.2004.6.2.236
International Telecommunication Union. (2019). Measuring digital development Facts and figures 2019. Retrieved January 21, 2020, from https://www.itu.int/en/ITU-D/Statistics/Pages/facts/default.aspx
Kpodar, K., & Andrianaivo, M. (2011). ICT, financial inclusion, and growth evidence from African countries. (IMF Working Papers, Vol. 11). https://doi.org/10.5089/9781455227068.001
Krishnan, S., & Teo, T. S. H. (2012). Moderating effects of governance on information infrastructure and e-government development. Journal of the American Society for Information Science and Technology, 63(10), 1929–1946. https://doi.org/10.1002/asi.22660
Levine, R. (1997). Financial development and economic growth: Views and agenda. Journal of Economic Literature, 35(2), 688–726. https://doi.org/10.1596/1813-9450-1678
Ma, L., Chung, J., & Thorson, S. (2005). E-government in China: Bringing economic development through administrative reform. Government Information Quarterly, 22(1), 20–37. https://doi.org/10.1016/j.giq.2004.10.001
Mahyideen, J. M., Ismail, N. W., & Hook, L. S. (2012). A pooled mean group estimation on ICT infrastructure and economic growth in ASEAN-5 countries. International Journal of Economics and Management, 6(2), 360–378.
Majeed, M. T. (2018). Information and communication technology (ICT) and environmental sustainability in developed and developing countries. Pakistan Journal of Commerce and Social Science, 12(3), 758–783.
Majeed, M. T., & Shah, A. (2018). An empirical analysis of economic performance of Asian economies: The role of electronic government. Review of Economics and Development Studies, 4(1), 91–102. https://doi.org/10.26710/reads.v4i1.284
Mankiw, N. G., Romer, P. M., & Weil, D. N. (1992). A contribution to the empirics of economic growth author. The Quarterly Journal of Economics, 107(2), 407–437. https://doi.org/10.2307/2118477
Maurseth, P. B. (2018). The effect of the Internet on economic growth: Counter-evidence from crosscountry panel data. Economics Letters, 172(1), 74–77. https://doi.org/10.1016/j.econlet.2018.08.034
Meyer, D. F., Masehla, T. M., & Kot, S. (2017). The relationship between economic growth and economic development: A regional assessment in south africa. Journal of Advanced Research in Law and Economics, 8(4), 1377–1385.
Morawczynski, O., & Ngwenyama, O. (2007). Unraveling the impact of investments in ICT, Education and health on development: An analysis of archival data of five West African countries using regression splines. The Electronic Journal of Information Systems in Developing Countries, 29(1), 1–15. https://doi.org/10.1002/j.1681-4835.2007.tb00199.x
Nagy, J., Oláh, J., Erdei, E., Máté, D., & Popp, J. (2018). The role and impact of Industry 4.0 and the internet of things on the business strategy of the value chain – The case of Hungary. Sustainability, 10(10), 3491. https://doi.org/10.3390/su10103491
Ngwenyama, O., Andoh-Baidoo, F. K., Bollou, F., & Morawczynski, O. (2006). Is There a relationship between ICT, health, education and development? An empirical analysis of five West African Countries from 1997–2003. The Electronic Journal of Information Systems in Developing Countries, 23(1), 1–11. https://doi.org/10.1002/j.1681-4835.2006.tb00150.x
Oláh, J., Sadaf, R., Máté, D., & Popp, J. (2019a). The influence of the management success factors of logistics service providers on firms’ competitiveness. Polish Journal of Management Studies, 17(1), 175–193. https://doi.org/10.17512/pjms.2018.17.1.15
Oláh, J., Yusmar, A. H., Máté, D., Novotny, Á., Popp, J., Lakner, Z., & Kovács, S. (2019b). A trust approach to the financial performance of information and communications technology enterprises. Polish Journal of Management Studies, 20(1), 332–343.
Pereira, A. C., & Romero, F. (2017). A review of the meanings and the implications of the Industry 4.0 concept. Procedia Manufacturing, 13, 1206–1214. https://doi.org/10.1016/j.promfg.2017.09.032
Piatkowski, M. (2006). Can information and communication technologies make a difference in the development of transition economies? Information Technologies and International Development, 3(1), 39–53. https://doi.org/10.1162/itid.2006.3.1.39
Poór, J., Juhász, T., Machová, R., Bencsik, A., & Bilan, S. (2018). Knowledge management in human resource management: Foreign-owned subsidiaries’ practices in four CEE countries. Journal of International Studies, 11(3), 295–308. https://doi.org/10.14254/2071-8330.2018/11-3/23
PWT. (2018). Penn World Table 9.0. https://doi.org/10.15141/S5J01T
Rodríguez-Ardura, I., & Meseguer-Artola, A. (2010). Toward a longitudinal model of E-commerce: Environmental, Technological, and organizational drivers of B2C adoption. The Information Society, 26(3), 209–227. https://doi.org/10.1080/01972241003712264
Ślusarczyk, B. (2019). Industry 4.0 – Are we ready? Polish Journal of Management Studies, 17(1), 232– 248. https://doi.org/10.17512/pjms.2018.17.1.19
Teo, T. S. H., Srivastava, S. C., & Jiang, L. (2009). Trust and electronic government success: An empirical study. Journal of Management Information Systems, 25(3), 99–131. https://doi.org/10.2753/MIS0742-1222250303
The World Bank. (2019). World Development Indicators | DataBank. Retrieved February 1, 2019, from https://databank.worldbank.org/data/source/world-development-indicators
Tolbert, C. J., & Mossberger, K. (2006). The effects of E-government on trust and confidence in government. Public Administration Review, 66(3), 354–369. https://doi.org/10.1111/j.1540-6210.2006.00594.x
UNDESA. (2003). World Public Sector Report 2003: E-government at the Crossroads.
United Nations. (2019). United Nations Department of Social and Economic Affairs > Research > UN e-Government Surveys. Retrieved January 21, 2020, from https://publicadministration.un.org/en/Research/UN-e-Government-Surveys
Welch, E. W., Hinnant, C. C., & Moon, M. J. (2005). Linking citizen satisfaction with e-government and trust in government. Journal of Public Administration Research and Theory, 15(3), 371–391. https://doi.org/10.1093/jopart/mui021
Weyer, S., Schmitt, M., Ohmer, M., & Gorecky, D. (2015). Towards industry 4.0 – Standardization as the crucial challenge for highly modular, multi-vendor production systems. IFAC-PapersOnLine, 28(3), 579–584. https://doi.org/10.1016/j.ifacol.2015.06.143
Zhao, F., Wallis, J., & Singh, M. (2015). E-government development and the digital economy: a reciprocal relationship. Internet Research, 25(5), 734–766. https://doi.org/10.1108/IntR-02-2014-0055
Zhu, K., Kraemer, K., & Xu, S. (2003). Electronic business adoption by European firms: a cross-country assessment of the facilitators and inhibitors. European Journal of Information Systems, 12(4), 251–268. https://doi.org/10.1057/palgrave.ejis.3000475