The Role of E-Government in Promoting Foreign Direct Investment Inflows

Ali Al-Sadiq

No 2021/008, IMF Working Papers from International Monetary Fund

Abstract: The outbreak of the COVID-19 pandemic has helped accelerate the digitization of public services. The lockdown initiated by most governments to curb the spread of the coronavirus forced most public agencies to switch to online platforms to continue providing information and services to the public. It is widely recognized that information diffusion and communication technology play a large role in improving the quality of public services in terms of time, cost, and interface with the public, business, and other agencies. Potentially, e-government could enhance a country’s locational advantages and attract more Foreign Direct Investment (FDI) inflows. This hypothesis is tested empirically using an unbalanced panel data analysis for 178 host countries over the period 2003-2018. The results suggest that e-government stimulates the inflow of FDI.

Keywords: E-government; Developing Countries; WP; FDI inflow; E-government service; e-government variable; FDI equation; development index (search for similar items in EconPapers)
Pages: 20
Date: 2021-01-15
New Economics Papers: this item is included in nep-ict and nep-int
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