Does digital governance reduce corruption? Comparative evidence from emerging and developed economies

Abstract

Digital governance remains underutilized despite its potential, especially in emerging market economies (EMEs) where structural and technological barriers persist. While digital technologies are increasingly used to combat corruption, they pose significant risks of digital control and create more opportunities for corruption. There is, however, a dearth of studies examining these mixed or heterogeneous effects across both developed and EMEs. To fill this gap, the present study investigates the relationship between digital governance and corruption control using the Feasible Generalized Least Squares model across a panel of 43 developed countries and EMEs from 2002 to 2022. By constructing a multidimensional Digital Governance Index and its sub-components using Principal Component Analysis, the research offers a comprehensive assessment of how digital governance, including data regulations, internet governance, social media governance, data integrity, and digital democracy, influences corruption control. The findings indicate that improvements in digital governance enhance corruption control. However, the effect is more pronounced in developed economies. The effectiveness of various dimensions of digital governance largely depends on institutional capacity and quality, and other contextual dynamics across countries.