DOES E-GOVERNMENT FOSTER WELFARE? AN EMPIRICAL INVESTIGATION FOR DEVELOPING COUNTRIES

Abstract

In this study, the effect of e-government on welfare is examined using ordinary least squares estimations for developing countries. A cross-sectional data set was created by averaging the data available between 2003 and 2020. The study basically examines the transmission channels through which e-government affects welfare. These channels serve as crucial pathways that link e-government initiatives to welfare outcomes. By examining these channels, the study seeks to unravel the significance of e-government as a determinant of welfare. When the transmission channels are considered, e-government is an essential variable that explains welfare. According to the findings of the study, the most important channel through which e-government affects welfare is regulatory quality, which accounts for about 15% of the total impact. Furthermore, the study identifies corruption and political stability as additional channels through which e-government influences welfare. These channels, although accounting for a relatively smaller proportion of the total impact, still play significant roles in shaping welfare outcomes. Overall, the findings emphasize the multi-dimensional nature of e-government's impact on welfare. By considering various transmission channels, this study provides valuable insights into the mechanisms through which e-government initiatives can effectively improve overall welfare in developing countries.