Digital Technologies: Anti or Pro Corruption?

Abstract

Digital technologies are often perceived to be uniformly positive tools for anti-corruption purposes creating more transparency and making governments more accountable. However, the evidence is inconsistent and scarce with empirical research narrowly focused on ICT as a specific aspect of digitalization. This study offers new insights based on a context-dependent perspective to solve the puzzle with a more holistic view of the digital transformation process. We distinguish between rule-based and non-rule-based countries as different governance environments and suggest that the context determines how digitalization plays out. While digital tools contribute to the fight against bribery in rule-based economies, they facilitate corruptive practices in non-rule-based countries. A panel data analysis on 72 countries over a 9-year period from 2012 to 2020 supports our arguments and confirms the context-specific nature of digital transformation and its discrepant implications for different societies.