E-Government, Internet Adoption, and Corruption: An Empirical Investigation

This study empirically investigates the impact of e-government and internet adoption on curbing corruption, by utilizing a large panel dataset. The results reveal that e-government is a powerful tool in reducing corruption—via telecommunication infrastructure and the scope and quality of online services—which is strengthened by greater internet adoption. The interaction effects between e-government and internet adoption suggest both as complements in anti-corruption programs. A dynamic panel data model that addresses the endogeneity problem and considers corruption persistency is employed. Results of panel Granger causality tests indicate a unidirectional causality from e-government to corruption, while a bilateral causality between internet adoption and corruption.