ICT Development, E-government Development and Economic Development. Does Institutional Quality Matter?

Abstract

Interest in the role and contribution of ICT development, e-government development, and the quality of a nation’s institutions on economic development is profound. While extant research shows that the impact of institutions on national development is different across countries generally, the literature overlooks the role institutional quality plays in either the ICT development–economic development or the e-government–economic development nexuses. Relying on publicly available archival data, this study explores the mediating relationship of institutional quality by using Partial Least Squares Structural Equation Modeling (PLS-SEM). Our results show a significant relationship between ICT development and e-government development, e-government development and institutional quality, e-government development and economic development, as well as institutional quality on economic development. Also, the contribution of ICT development to economic prosperity can further be strengthened indirectly via the impacts of institutional quality. This study contributes to the theoretical discourse on the impact of ICT development and e-government development on economic development and the mediating effects of institutional quality. It offers implications for practice and policy.