The Role of E-Government in Promoting Foreign Direct Investment Inflows
IMF Working Papers, January 15, 2021
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Bibliographic details
- Authors: Ali J Al-Sadiq
- Published: January 15, 2021
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781513566795.001
Overview
- The outbreak of the COVID-19 pandemic has helped accelerate the digitization of public services.
- Lockdowns forced most public agencies to switch to online platforms to continue providing information and services to the public.
- 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.
Methodology and Sample
- Hypothesis tested empirically using an unbalanced panel data analysis.
- Sample: 178 host countries.
- Period: 2003-2018.
Main Findings
- The results suggest that e-government stimulates the inflow of FDI.
- E-government is identified as a mechanism that can improve public-service quality (time, cost, interface) and thereby influence FDI decisions.
Implications
- E-government initiatives can be part of strategies to enhance a country’s locational advantages and attract more FDI inflows.
- The COVID-19–driven acceleration of public-service digitization underscores the relevance of e-government for investment promotion.
Subjects and Keywords
- Subject: Corruption, Foreign direct investment, Infrastructure, Logit models, Public employment
- Keywords: Developing Countries, development index, E-government, E-government service, e-government variable, FDI equation, FDI inflow, WP
Source: "The Role of E-Government in Promoting Foreign Direct Investment Inflows", Ali J Al-Sadiq, IMF Working Paper No. 2021/008, January 15, 2021.
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