E-government, Economic Growth and Trade: A Simultaneous EquationApproach

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 crosssection 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 egovernment and  economic growth, trade and e-government, and unilateral causality exists from trade to growth.