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Can Digitalization Help Deter Corruption in Africa?

Author

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  • Rasmané Ouedraogo
  • Mr. Amadou N Sy

Abstract

This paper studies the effect of digitalization on the perception of corruption and trust in tax officials in Africa. Using individual-level data from Afrobarometer surveys and several indices of digitalization, we find that an increase in digital adoption is associated with a reduction in the perception of corruption and an increase in trust in tax officials. Exploiting the exogeneous deployment of submarine cables at the local level, the paper provides evidence of a negative impact of the use of Internet on the perception of corruption. Yet, the paper shows that the dampening effect of digitalization on corruption is hindered in countries where the government has a pattern of intentionally shutting down the Internet, while countries that successfully promote information and communication technology (ICT) enjoy a more amplified effect.

Suggested Citation

  • Rasmané Ouedraogo & Mr. Amadou N Sy, 2020. "Can Digitalization Help Deter Corruption in Africa?," IMF Working Papers 2020/068, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2020/068
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    Cited by:

    1. Kohnert, Dirk, 2021. "The impact of digitalization on poverty alleviation in Africa," MPRA Paper 110269, University Library of Munich, Germany.
    2. Mensah,Justice Tei & Traore,Nouhoum-000531164, 2022. "Infrastructure Quality and FDI Inflows : Evidence from the Arrival of High-Speed Internet in Africa," Policy Research Working Paper Series 9946, The World Bank.
    3. Kohnert, Dirk, 2021. "L'impact de la numérisation sur la réduction de la pauvreté en Afrique [The impact of digitalization on poverty alleviation in Africa]," MPRA Paper 110297, University Library of Munich, Germany.

    More about this item

    Keywords

    WP; tax official; online service; intentional disruption; DAI government; government action; simple average;
    All these keywords.

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