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E-government, Economic Growth and Trade: A Simultaneous Equation Approach

Author

Listed:
  • Muhammad Tariq Majeed

    (Assistant Professor, School of Economics, Quaid-i-Azam University, Islamabad)

  • Amna Malik

    (Officer Grade 1, State Bank of Pakistan, Karachi)

Abstract

Does e-government promote trade and economic growth? This paper attempts to answer this question by employing simultaneous equation estimation approach and using a cross-section data of 147 countries. This is first study which has empirically estimated the bilateral relationships between economic growth and e-government, trade and e-government and trade and economic growth. The findings indicate that e-government is a stimulant of both economic growth and trade. The results predict the presence of a bilateral relationship between e-government and economic growth, trade and e-government, and unilateral causality exists from trade to growth.

Suggested Citation

  • Muhammad Tariq Majeed & Amna Malik, 2016. "E-government, Economic Growth and Trade: A Simultaneous Equation Approach," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 55(4), pages 499-519.
    • Handle: RePEc:pid:journl:v:55:y:2016:i:4:p:499-519
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    References listed on IDEAS

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    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • H10 - Public Economics - - Structure and Scope of Government - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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