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Digital State Capacity

Author

Listed:
  • Patrick Healy
  • Simon D. Angus
  • Paul Raschky
  • Klaus Ackermann
  • Nathan Lane
  • Weijia Li
  • Cynthia Huang

Abstract

Digital State Capacity is the ability of governments to deploy ICT infrastructure and information systems to implement policy. This paper introduces a new measure of government ICT capacity based on an observable stock of deployable public-sector network infrastructure: public IPv4 address space held by government organisations. These address holdings are key inputs into digital administration because they support internet-facing systems, networked information exchange, and coordination across agencies and functions. The core panel covers approximately 150,000 country-entity records classified as government across more than 150 countries from 2019 to 2024 and can be disaggregated by administrative level and government function. In the 2019 to 2024 Admin-1 panel, government IP holdings are observed in 1,681 subnational regions across all years. We validate the measure at the cross-country and subnational levels and apply it to government tasks related to corruption control and vaccination rollout. In illustrative country-year analysis, higher Digital State Capacity is associated with higher-quality governance and public-service outcomes in the expected directions, including lower measured corruption and higher vaccination coverage. These associations are descriptive; they demonstrate the empirical relevance of the measure and are not causal estimates.

Suggested Citation

  • Patrick Healy & Simon D. Angus & Paul Raschky & Klaus Ackermann & Nathan Lane & Weijia Li & Cynthia Huang, 2026. "Digital State Capacity," SoDa Laboratories Working Paper Series 2026-02, Monash University.
  • Handle: RePEc:ajr:sodwps:paper_1786090567877_919
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    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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