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

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  • Mr. Ali J Al-Sadiq

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.

Suggested Citation

  • Mr. Ali J Al-Sadiq, 2021. "The Role of E-Government in Promoting Foreign Direct Investment Inflows," IMF Working Papers 2021/008, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2021/008
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    Cited by:

    1. Usman Alhassan, 2023. "E-government and the impact of remittances on new business creation in developing countries," Economic Change and Restructuring, Springer, vol. 56(1), pages 181-214, February.

    More about this item

    Keywords

    E-government; Developing Countries; WP; FDI inflow; E-government service; e-government variable; FDI equation; development index;
    All these keywords.

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