E-participation as a driver of economic growth: a cross-country study

This study examines the relationship between electronic participation (e-participation) and economic growth across different development contexts, with a specific focus on corruption as a mediating mechanism. While governments worldwide invest significantly in e-participation platforms, their economic impact remains unclear. Drawing on Sen's capability approach and institutional economics, we position e-participation as a digital capability that enhances economic growth by positively impacting citizens' instrumental freedoms. Using panel data analysis, including the fixed effects model, two-stage least squares regression, and dynamic panel threshold regression, we find that e-participation's impact varies significantly across development contexts. Low-income countries show strong positive effects through both direct and corruption-reduction channels, middle-income countries demonstrate moderate positive effects, while high-income countries exhibit diminishing returns. These findings challenge technological determinism by revealing the context-dependent nature of digital governance interventions, emphasizing the need for tailored e-participation strategies across different development stages.