E-Government and Foreign Direct Investment

Along with the rapid development of digital information technology, e-government is of great potential because it is a new form of conducting public administration and a way of demonstrating governmental innovation. The literature suggests that foreign direct investment (FDI) is increasingly associated with the continuing development of e-government in China. Using the Annual Census of Industrial Enterprises and e-government scores of government portals, this study examines the effects of e-government on FDI and how government subsidies mediate relationships between e-government and FDI. Our results show that e-government positively affects FDI, and government subsidies have a positive effect on foreign enterprises' investment efficiency by playing a mediating role between e-government efficiency and FDI. The findings make both theoretical and practical implications related to the role, provision and acquisition of government subsidies; e-government systems and FDI; e-government scores and government efficiency; and firms maintaining focus on areas that are government priorities.

E-Government and Foreign Direct Investment

Along with the rapid development of digital information technology, e-government is of great potential because it is a new form of conducting public administration and a way of demonstrating governmental innovation. The literature suggests that foreign direct investment (FDI) is increasingly associated with the continuing development of e-government in China. Using the Annual Census of Industrial Enterprises and e-government scores of government portals, this study examines the effects of e-government on FDI and how government subsidies mediate relationships between e-government and FDI. Our results show that e-government positively affects FDI, and government subsidies have a positive effect on foreign enterprises' investment efficiency by playing a mediating role between e-government efficiency and FDI. The findings make both theoretical and practical implications related to the role, provision and acquisition of government subsidies; e-government systems and FDI; e-government scores and government efficiency; and firms maintaining focus on areas that are government priorities.

The Impact of Government Efficiency, Corruption, and Inflation on Public Debt: Empirical Evidence from Advanced and Emerging Economies

This research investigates the empirical relationship of government efficiency, corruption, and inflation regarding public debt between advanced and emerging economies. Random effects estimation is used to analyse a sample of 40 countries. The analysis results show that corruption and inflation in advanced economies have a significant and positive effect on public debt. Corruption affects public debt to increase, but on the flip side, inflation affects public debt to decrease. In emerging economies, the results show a positive impact of government efficiency on public debt. Hence, government efficiency will be considered an obstacle when a policy initiated to reduce public debt. Meanwhile, policymakers should take note countries’ corruption and inflation rates when formulating policies to reduce public debt in advanced economies.

Participatory budgeting and government efficiency: evidence from municipal governments in South Korea

The current study evaluates the role of a democratic institution—participatory budgeting—in improving government efficiency. Participatory institutions aim to enhance governance, information sharing, and the responsiveness of political agents to citizens, leading to fiscal accountability and efficiency. Drawing from a database of 221 municipal governments in South Korea around a mandatory participatory budgeting adoption period, we find that participatory budgeting adoptions are followed by improvement in multiple dimensions of government efficiency. In particular, municipal governments experience statistically significant improvements in their fiscal sustainability and administrative efficiency. In additional analysis, we find that the efficiency improvements are more pronounced in the presence of strong mayoral leadership. Overall findings suggest that participatory budgeting programs contribute to fiscal health and administrative efficiency, above and beyond their role in securing fiscal democracy. Points for practitioners The current study suggests that participatory budget systems not only contribute to quality in democracy (as prior studies have found), but also improve fiscal efficiency and accountability by serving as a bottom-up governance mechanism. We document that introductions of participatory budgeting programs are followed by statistically significant improvements in fiscal sustainability and administrative efficiency. The results also indicate that the efficiency-improvement effect differs across municipalities, depending on their political environments. Overall, this study provides a strong argument for the participatory budgeting system by empirically supporting its efficiency-improvement effect.