The Impact of E-Government on the New Generation Productive Capacities: Evidence from Cross-Country Data

Abstract

The New Generation Productive Capacity Index (PCI) and the E-Government Development Index (EGDI) are increasingly used in various economies. Therefore, can e-government contribute to the continuous development of the new generation of productive capacity? Focusing on this important issue, this paper systematically examines the mechanism of the impact of e-government on the new generation of productive capacity and tests it using relevant data from major global economies. Firstly, this paper conducts regression analysis using the panel fixed-effects model, and the results show that e-government has a positive facilitating effect on the new generation of productive capacity. Secondly, the development of e-government will directly reduce the time, procedural, and monetary costs for enterprises and individuals to obtain government services, thereby promoting the development of production capacity. Finally, the specific changes in the structure of social expenditures are that government education expenditures and general expenditures will increase, but total government expenditures and household expenditures will not be affected by the construction of e-government. The research contribution of this paper is mainly reflected in the following three aspects: first, in terms of research perspectives, this paper extends the research on e-government’s ability to improve the efficiency of governments and organizations in handling affairs and its impact on the productive capacity of a society. Second, it contributes to the theory on the topic of e-government. This paper proposes a general equilibrium model to reveal the impact of e-government construction on a government and the public, and to more comprehensively reveal the impact mechanism of e-government construction in the whole economy. Third, this paper contributes empirical evidence. This paper utilizes the data of the major economies around the world to reveal the mutual influence between the construction of e-government and the new generation of productive capacity, and then effectively proves the specific impact of e-government on governments, enterprises, and individuals through the test of cost mechanism and financial mechanism. Different from the existing literature, this paper focuses on the impact of e-government on the new generation of productive capacity, revealing that e-government construction does not increase the financial burden on governments but reduces the burden on firms and individuals, thus providing new insights into the productivity effects of e-government development.