E-government, economic growth and trade: A simultaneous equation approach

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.