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The influence of the ICT on the control of corruption in public administrations of the EU member states: A comparative analysis based on panel data

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Abstract

Developments in Information and Communication Technology (ICT) have led to major changes in public administration in all democratic states. The fact that information can be made public and accessible from anywhere, at any time, requires a new approach to the process of computerization of public administration. The objective of the research was to know the influence of ITC integration in the EU state administrations on corruption control in the period 2010-2019. We selected four relevant variables, which we integrated in a panel analysis including the 27 EU member states. Using STATA we made an econometric model on panel data and obtained interesting results from a scientific point of view. The results show that the integration of ICTs in the EU public administrations has significantly contribution to reducing corruption These results demonstrate the need to accelerate the digitization of administrations and create an integrated model of government cloud in the European administrative space. In addition, the results of the research highlight the differences between EU states in terms of the impact of ICTs on government efficiency and economic development.
ADMINISTRAȚIE ȘI MANAGEMENT PUBLIC 37/2021 41
The influence of the ICT on the control of corruption in public
administrations of the EU member states: a comparative
analysis based on panel data
Armenia ANDRONICEANU1, Elvira NICA2,
Irina GEORGESCU3, Oana Matilda SABIE4
Abstract: Developments in Information and Communication Technology (ICT) have led to
major changes in public administration in all democratic states. The fact that information
can be made public and accessible from anywhere, at any time, requires a new approach to
the process of computerization of public administration. The objective of the research was
to know the influence of ITC integration in the EU state administrations on corruption
control in the period 2010 - 2019. We selected four relevant variables, which we integrated
in a panel analysis including the 27 EU member states. Using STATA we made an
econometric model on panel data and obtained interesting results from a scientific point of
view. The results show that the integration of ICTs in the EU public administrations has
significantly contribution to reducing corruption These results demonstrate the need to
accelerate the digitization of administrations and create an integrated model of government
cloud in the European administrative space. In addition, the results of the research
highlight the differences between EU states in terms of the impact of ICTs on government
efficiency and economic development.
Keywords: public administration, ITC, panel analysis, corruption
JEL: C33; D73; G28.
DOI: 10.24818/amp/2021.37-03
1 Professor PhD, Bucharest University of Economic Studies, Bucharest, Faculty of Administration
and Public Management, Bucharest, Romania, e-mail: armenia.androniceanu@man.ase.ro
2 Professor PhD, Bucharest University of Economic Studies, Faculty of Administration and
Public Management, Bucharest, Romania, e-mail: elvira.nica@ase.ro
3 Associate Professor, PhD, Bucharest University of Economic Studies, Faculty of Economic
Cybernetics, Statistics and Informatics, Bucharest, Romania, e-mail: irina.georgescu@csie.
ase.ro
4 University Lecturer, PhD, Bucharest University of Economic Studies, Faculty of
Administration and Public Management, Bucharest, Romania, e-mail: oana.sabie@amp.
ase.ro
Androniceanu, A., Nica, E., Georgescu, I., Sabie, O. M. (2021). The influence of the ICT
on the control of corruption in public administrations of the EU member states: a
comparative analysis based on panel data. Administratie si Management Public, 37, 41-
59
DOI: 10.24818/amp/2021.37-03
The influence of the ICT on the control of corruption in public administrations
of the EU member states: a comparative analysis based on panel data
42 ADMINISTRAȚIE ȘI MANAGEMENT PUBLIC 37/2021
Introduction
The management of information systems in public administration is
becoming a very topical and increasingly complex issue. The communication
process between the different structures of public administration within the states,
but also between them can be improved by redirecting the existing information
flows (Nica et al., 2021) and by redesigning the applications currently in use in the
public sector (Kovacova and Lăzăroiu, 2021) and by creating other applications
(Novak et al., 2021) that efficiently use available information resources.The quality
of the IT system in the public administrations of the states influences to the highest
degree the quality of the decision-making system in the public institutions (e.g.
Bednárová et al., 2021). In order to support the process of improving the
management of public institutions and reducing corruption in the public sector in a
country, new information programs and procedures are needed, adapted to the
expectations of citizens (Ardielli, 2020; Maris, 2020) and the business environment
(Belas et al., 2020; Androniceanu A-M. et al., 2020a; Marišová et al., 2013;
Godany et al., 2021; Fabuš et al., 2021).
At the beginning of the process of integrating ITC in the administration, in
most states, the efforts towards computerization of the public administration were
more fragmentary, determined by the limited financial possibilities, the level of
professional training of staff and decision makers in local public administration and
the degree of awareness of the need to refurbish the activities of the local public
administration (Lindgren et al, 2019). In some European countries, this process
began a few decades ago and a complex approach to the computerization of public
institutions was needed, in parallel with the training and specialization of human
resources (Ciobanu and Androniceanu, 2018; Androniceanu et al., 2020). The
computerization of administrative systems is based on the creation of an
information system that replaces the traditional procedures of processing
information (Popescu et al., 2020a) with new information technology products
(Nica and Stehel, 2021), designed and developed in accordance with the functions
of public administration.
Most public institutions in the EU have already automated some of their
operations (Popescu et al., 2021), aiming to become more open and transparent in
their relations with the public. However, the computerization of the public
administration is a complex and long process, which requires a staged approach. E-
government at the level of public institutions, through modern IT applications, is
proof that the administration has evolved in all aspects (Ardielli, 2020;
Androniceanu A-M. et al., 2020b; Laužikas et al., 2021). From an IT point of view,
it can be said that the most important advances have been in infrastructure
investments, expanding the Internet connection and implementing integrated
information systems (Lăzăroiu et al., 2021) through an efficient collaboration with
companies specialized in information applications adapted to the needs of the
administration. By running IT applications, public institutions have the opportunity
The influence of the ICT on the control of corruption in public administrations
of the EU member states: a comparative analysis based on panel data
ADMINISTRAȚIE ȘI MANAGEMENT PUBLIC 37/2021 43
to provide taxpayers with superior quality services. Integrated information systems
contribute to increasing the accessibility of administrative services, connecting
officials to a single database, which allows a simplified, fast and efficient flow of
administrative processes (Lahkani, et al., 2020; Muangmee et al., 2021). By using a
unitary IT model, the administration institutions benefit from the standardization of
the usual administrative rules and procedures. The central objective of
computerization of the administration continues to be the wide and non-
discriminatory access of citizens to quality public services. As an immediately
visible effect for taxpayers, computerization will lead to a reduction in tariffs for
services provided to the population, by reducing operating and personnel costs,
increasing the accessibility and transparency of public services and reducing
corruption in the administration. E-government is essential for eliminating /
simplifying bureaucratic procedures, for improving access to information, for
reducing state budget expenditures, for preventing and reducing corruption, and for
strengthening the administrative capacity of public institutions.
1. Literature review on e-government in Europe
At European level, the implementation of eGovernment and services has
started in line with its own national strategies, since 1994-1997 (e.g. the
Netherlands, Denmark, Finland, Sweden, Germany or Luxembourg). In other
Community countries (Portugal, Italy, Austria, Greece, France and the United
Kingdom), this was done through open debate platforms, focused on related
programs and action plans. Although the application of these services differs from
country to country, the objectives of e-Government are common and aim at
applicability, utility, efficiency, transparency, innovation, sustainability,
participation and security for the state (Ključnikov et al., 2019; Burcea & Abăluță,
2007), citizens and the business environment (Szeiner et al. 2020; Mura, 2020). In
this sense, eGovernment contributes to the need in fairness and equity in public
administration issues important for society, particularly, tax compliance (Mas’ud et
al., 2019), distributive justice at all levels of administration (Mishchuk et al., 2019).
The introduction at the level of public institutions of electronic document
management services, customized to their own needs, in conjunction with
electronic signature and time stamping services, have contributed to reducing the
costs and time associated with the document circuit, ensuring also opposability,
security and flow traceability.
The introduction of inter- and intra-institutional flows guarantees the
exclusive access of authorized persons to those data and information. Electronic
signature and time-stamping services can be shared by document management
solutions and electronic invoicing. Cloud computing is a very well represented
element in the European Digital Agenda and can bring back a fast pace of
development of electronic services. ICT infrastructure has increased over the last
20 years to meet the demand for public services. This approach has led to an
The influence of the ICT on the control of corruption in public administrations
of the EU member states: a comparative analysis based on panel data
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increasingly expensive infrastructure that limits the ability of governments to
modernize and capitalize on the latest advances in ICT, becoming a factor of
systemic "immobility" (Poliak et al., 2020; Russell, 2020). Cloud-computing is a
radical change in institutions that use ICT resources. Instead of storing applications
and data on individual servers and computers, everything is hosted in the "cloud" -
a collection of computers and servers accessed through the government intranet
that should include secure Internet connection components (Cuillier & Piotrowski,
2009).
Cloud computing technologies have fostered an active market for software
solutions (Popescu et al., 2020b), many of which are based on open standards. This
has changed the ICT landscape from one of the dedicated systems, interconnected
(more or less) through the network, to one that includes widely used and
interoperable solutions (Darusalam et al., 2021; Green, 2020). In turn, these
changes produce other changes in the behavior of organizations, which now have
the opportunity to use general-purpose solutions that are appropriate to their needs,
at a much lower cost (specifically, validated solutions can now be replicated
quickly in similar institutions, with very low costs) (Vartanova et al., 2021;
Shevyakova et al. 2021; Zieziula, Niewiadomska, 2021). These possibilities are
available now due to the steep penetration of ICT in all spheres of economic
relations, especially in business surrounding (Bilan et al., 2019), development of
managerial knowledge-based systems based on artificial intelligence use (Bencsik,
2021; Androniceanu, A-M. et al., 2020c; Misuraca, G. & van Noordt, C., 2020;
Androniceanu A-M. et al., 2021). Rather than replacing humans, artificial
intelligence will have a greater impact if it is used to reduce administrative hassles
and enhance human experience. These artificial intelligence technologies, when
used properly, can help offer citizen services more efficiently while potentially
lowering costs and enhancing user happiness. These artificial intelligence
applications could allow for a more direct communication between citizens and the
government (Mehr, 2017). Resources such as computing power, storage space and
services are used only when needed and only generate costs when they are
exploited, ensuring greater efficiency. By adopting cloud computing, the
government may be able to provide services more easily and share consumer
services and products (Khan, et al., 2021). This will allow it to move from
dedicated, high-cost applications and solutions to standard, low-cost
interchangeable services. Therefore, porting eGovernment solutions to a cloud
infrastructure can lead to important benefits, such as: - reusing (replicating)
validated solutions within other institutions; - low costs; - continuity in the
development of information systems; - increased flexibility; - unitary infrastructure
management; - the maintenance and upgrade of information systems is done at low
costs; - emphasis on optimizations and efficiency (Andersen, 2009).
The implementation and provision of cloud governance (Johnson, 2020)
and e-government services in the EU takes place in the context of the adoption by
the European Commission (2013) on 27 September 2012 of a Strategy for the use
The influence of the ICT on the control of corruption in public administrations
of the EU member states: a comparative analysis based on panel data
ADMINISTRAȚIE ȘI MANAGEMENT PUBLIC 37/2021 45
of potential cloud computing in Europe (SCCE), a prerequisite for creating a
homogeneous digital space, designed to enable the creation of a digital single
market (Marino & Pariso, 2021).
Estimates at the level of the European institutions have revealed that the
benefits of the cloud come from both the large-scale savings involved (savings of
at least 10-20% of the costs of public / private entities that have adopted this
technology - especially those in the field of ICT -), as well as through a significant
increase in productivity in all sectors of activity, in parallel with the growth of jobs.
In addition to the defining components and features of cloud services involving
distinct levels of hardware, middleware (platform) and application software, the
Strategy for harnessing the potential of cloud computing in Europe pays particular
attention to standardizing these technologies (Lăzăroiu and Harrison, 2021), as they
allow developers to address a wide range of organizations, while giving users the
opportunity to choose (Kinnunen at al., 2021). The issue of standards in the cloud
is a European challenge because they will influence the work of key players in the
ICT industry, public sector users and small and medium-sized enterprises. In this
context, the European Commission is constantly concerned with the harmonization
of existing documents on standards, in order to regulate the issue of standardization
in the cloud.
Thus, among the objectives of SCCE is the establishment of the necessary
technical standards in the field and ensuring their interoperability and compliance.
The competent European institutions have selected experts to contribute to the
finalization of common standards, within the European Partnership for Cloud
Computing (PECC) with the Member States and the industry. PECC includes 7
states and 12 companies. The PECC aims to avoid fragmentation and ensure that
the use of the public cloud is interoperable and secure, secure, environmentally
friendly and in line with European standards, both in the field of protection of
personal data and information, and security (level at which view of cooperation
with the private sector). The PECC also aims to create a Digital Single Market for
cloud computing in Europe.
In November 2013, the PECC launched the Cloud for Europe - C4E
project, with 3 main objectives: (1) Identifying barriers to using the cloud in the
public sector; (2) Defining ways to deal with identified obstacles; (3) Procurement
of research and development services in the profile industry to identify viable
solutions for cloud services. C4E is made up of a consortium of 24 partners (public
sector, industry, standardization organizations from 12 European countries.
Identifying EU-wide certification schemes for reliable cloud computing providers
is an ongoing concern of EU countries). Consideration is being given to developing
"key" clauses (secure and fair) for cloud contracts, including service level
agreements (SLAs), which should become the standard for concluding contracts
between service providers and users in the field. a detailed map of the required
standards, approach of the COM, finalized by ETSI (European
Telecommunications Standards Institute), map included in the Final Report on the
The influence of the ICT on the control of corruption in public administrations
of the EU member states: a comparative analysis based on panel data
46 ADMINISTRAȚIE ȘI MANAGEMENT PUBLIC 37/2021
coordination of cloud standards (November 2013), a document designed to provide
solutions related to security, interoperability, portability and reversibility data
(Nica, 2021) with which the main actors operate in the cloud.Another objective of
the COM is to grow trust in cloud services, by developing specifications for ICT
procurement to ensure compliance and performance.
The research-development-innovation component becomes critical in
establishing the timing and quality of the development of eGovernment solutions.
The introduction of the government cloud anticipates strategic changes and
provides the necessary tool to facilitate the major change that regionalization
represents because it allows, easily, the modification of infrastructures and
applications in one place to adapt to the rigors of regionalization without relocating
them and without setting up new hardware / software infrastructures, as in the case
of the decentralized approach. In the case of the cloud, it is sufficient to reorganize
the data by regions, with minimal adaptation of related applications and security
and data access rules, without affecting the availability of services to the
population in the medium or long term (Burhanudddin et al., 2019).
The cloud management body, together with the participating institutions,
should establish the basic entities - people, addresses, telephones, e-mail addresses,
IP addresses, financial transactions, etc. Depending on the competencies, the
institutions will assume the specific entities, for which design and use standards
will be defined, as well as the related data structures, which will be used widely at
national level. Thus, the national catalog of basic entities and related data structures
will be established. For the implementation of the "government cloud" it is
proposed to develop a level 3 or 4 data center, which involves a similar level
backup center, with 99.96% availability. To ensure connections with the
institutions, a redundant high-speed, governmental infrastructure (government
intranet) will be used. Data separation is done logically, within centralized
databases. Currently, there is a paradigm shift regarding the replication of data in
the Integrated Information System in the sense of establishing new government
cloud structures, in which the institutions of the government system and
administration participate. The development of information hubs at regional level
in all EU countries needs to be accelerated. An information hub is a system through
which a central or regional institution can request information from the database of
another regional or local institution. From a topological point of view, the solution
is optimal because it eliminates the need for direct connection, 1 to 1, of all public
institutions, opting in favor of a central point that functions as an information
broker, taking over the request of a public institution and returning it the result
after querying the source system responsible for managing that information, thus
minimizing the effects of changes in data structures.
The regional hubs in the EU states are implemented in the government
Cloud and are interconnected with the Integrated Information System, completing
it. From the point of view of the traded information, the hubs eliminate the
centrifugal effect induced by regionalization and are the ones that ensure the
The influence of the ICT on the control of corruption in public administrations
of the EU member states: a comparative analysis based on panel data
ADMINISTRAȚIE ȘI MANAGEMENT PUBLIC 37/2021 47
cooperation with the e-government system. Moreover, this topology corresponds to
the principles of regionalization, in which each regional Hub is governed by the
rules of that region. Habs also ensure the "synchronization" of administration
databases, eliminating "historical" inconsistencies (due to the island development
of eGovernment from 2003-2013). Inter-institutional cooperation to streamline the
demands of citizens and companies is a basic principle of electronic public
services. Thus, when a citizen or a company launches an application in electronic
format to a competent authority, it will no longer have to attach documents or
information from other institutions, because the competent authority will be able to
obtain this information automatically through the Hub network. -hate. Due to this
functionality, the Hubs can be implemented in conjunction with the Point of Single
Contact, a system defined by a European directive as a point for receiving requests
in electronic format addressed to the administration.
E-government is the use by the public sector of information and
communication technologies in order to improve the provision of information and
services by encouraging citizen participation in decision-making and accountability
of the government in a transparent and efficient manner and reducing corruption in
a state (Remeikienė et al., 2020; Lincényi & Čársky, 2021).
Since 2012, when the ICC methodology used by Transpaerncy
International allows the comparison of scores, 26 countries have significantly
improved their score in the Index, referring here to Ecuador (39), Greece (50),
Guyana (41), Myanmar (28) and South Korea (61). At the same time, 22 countries
significantly reduced their points, including Bosnia and Herzegovina (35),
Guatemala (25), Lebanon (25), Malawi (30), Malta (53) and Poland (56). Nearly
half of the countries evaluated have stagnated in the ICC rankings for more than a
decade, indicating a stalemate in government efforts to address the root causes of
corruption (Ben Ali & Gasmi, 2017; Sabie, 2012).
More than two-thirds of the states have scores below 50 points. Corruption
is a major threat to the lives and lifestyles of citizens, especially when it overlaps
with a public health emergency (Jain, 2001). Clean (uncorrupted) public sectors are
correlated with higher investments in the health system. Uruguay, for example, has
the highest CPI (71) in Latin America, invests heavily in the medical system and
has a well-developed epidemiological surveillance system, which has helped it to
respond to COVID 19 and other infectious diseases, such as yellow fever and Zika.
Corruption is also persistent in the procurement of medical supplies.
Countries with high levels of corruption have tended to disregard the rule of law
and democratic institutions during the COVID-19 pandemic. This category
includes the Philippines (34), where the response to the COVID 19 pandemic has
been characterized by serious violations of human rights and freedom of the press.
Continuing the downward trend, the United States achieved in 2020 the
lowest score of 2012, with 67 points. In addition to alleged conflicts of interest and
abuse of office at the highest level, in 2020 the poor oversight of the $ 1 trillion
The influence of the ICT on the control of corruption in public administrations
of the EU member states: a comparative analysis based on panel data
48 ADMINISTRAȚIE ȘI MANAGEMENT PUBLIC 37/2021
COVID-19 aid package has caused serious concern and marked a deviation from
democratic rules on which promotes responsible government.
The year 2019 highlighted integrity challenges even in the case of
countries with high scores in the ICC, which proves that no country is free of
corruption (Lučić et al., 2016). Previous research conducted by Transparency
International (2020) under the Global Health program has shown that the
phenomenon of corruption deprives the global health sector of $ 500 billion each
year. In this paper we investigate the influence of ICT on public expenses,
standards of citizen’s life and corruption. The research question answered by our
analysis is: how much does the integrated ITC in public administration contribute
to reducing corruption and economic development in EU countries?
2. Research methodology
In the section of the research methodology we present in detail the steps of
the Pooled Mean Group-Autoregressive Distributed Lag (PMG-ARDL) panel
model. To examine the long-run and short-run relationships between the
independent and dependent variables, the PMG-ARDL model was chosen.
The stationarity of all variables was tested to determine their order of
integration. These stationarity tests ensure that the variables are not I(2) so as to
avoid spurious regression. The direct application of OLS -based models without
checking the stationarity would also lead to spurious regression (Engle and
Granger, 1987).
In the section of results and discussion we present the main findings
together with their interpretations. The paper ends with conclusions.
Table 1. The definitions of variables
Variable
Description of the
variables
Abbreviation
Range of
possible values
Source
Control of
corruption
the quality of governance
to combat and prevent
corruption
CCOR
[0,100]
World
Bank
GDP per capita
gross domestic product
converted to international
dollars using purchasing
power parity rates
GDPCAP
PPP Current
USD$
World
Bank
Expense %GDP
cash payments for
operating activities of the
government in providing
goods and services
EXPG
%
World
Bank
ICT employment
of total
the percentage of
employment of ICT
specialists out of
ICT
%
World
Bank
The influence of the ICT on the control of corruption in public administrations
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ADMINISTRAȚIE ȘI MANAGEMENT PUBLIC 37/2021 49
We formulate two research hypotheses which will be tested by the ARDL
panel data model.
Hypothesis 1: In the states where the government invests in the ICT sphere,
then corruption is lower compared to other states, therefore the control of
corruption is higher.
Hypothesis 2: The bidirectional causality between GDP per capita and
corruption is negative, meaning that a higher level of corruption, therefore a lower
control of corruption, leads to a lower level of GDP per capita and conversely.
In order to verify these hypotheses, we will apply a panel ARDL.
In this paper, we will apply the Pooled Mean Group-Autoregressive
Distributed Lag (PMG-ARDL) for the 27 EU members for 2010-2019. The
traditional panel data techniques are fixed and random effects models, where the
intercepts vary across cross-sections, but the other coefficients and error variance
coincide across cross-sections. (Chen and Su, 2014).
Pesaran and Smith (1995) concluded that the fixed/random effects
estimators are inconsistent under the hypotheses of slope coefficients heterogeneity
and error variance. Pesaran and Smith (1995) proposed the MG estimator which
assumes the estimation of separate regression for each country and allows the
coefficients to be heterogeneous on short and long term. PMG-ARDL was created
by Pesaran et al. (1999) in order to estimate a regression equation in case of a
mixture of orders of integration I(0) and I(1). PMG is characterized by
heterogeneous short-run coefficients across cross-sections (here countries) and
homogeneous long-run coefficients across cross-sections.
The coefficient of the error correction term (ECT) describing the long-run
causality should be negative and larger than -2. ECT signifies the speed of
adjustment from short run disequilibrium to long run equilibrium. To test the
differences between PMG and MG techniques, we apply the long-run Hausman test
(Hausman, 1978).
First, we apply the Im-Pesaran-Shin unit root test (Im et al., 2003) to check
the order of integration of the four-time series, as can be seen in Table 2.
2.1 Descriptive statistics
Table 2 contains descriptive statistics.
Table 2. Descriptive statistics
Mean
Std. Dev.
Min
Max
overall
77.95
15.39
48.81
100
between
15.46
50.83
99.13
within
2.41
64.41
86.26
overall
38817.17
17399.65
14879.27
120962.2
16724.74
18818.46
103050
The influence of the ICT on the control of corruption in public administrations
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50 ADMINISTRAȚIE ȘI MANAGEMENT PUBLIC 37/2021
Mean
Std. Dev.
Min
Max
between
5691.16
19794.95
63680.76
within
overall
45.31
6.92
24.5
65.1
between
6.22
36.21
56.6
within
3.25
33.10
73.7
overall
3.37
1.21
1.5
7
between
1.16
1.87
6.33
within
0.39
2.44
5.04
(Source: Author’s own determination using STATA)
From table 2 can be noticed a high income inequality among EU countries
(Georgescu et al., 2020), since the standard deviation of GDP per capita is very
high. The standard deviation of ICT overall, between and within is relatively high
compared to the mean of 3.37, indicating that there exists a digital divide among
EU countries. Next, we apply the IPS unit root test to check the stationarity of the
variables. It is necessary to conduct the panel unit toot tests to make sure that the
integration order of the variables does not exceed 1.
2.2 Research results and discussions
Table 3 reports that CCOR, GDP per CAP and ICT are I(1), while EXPG is
I(0) at 5% significance level. We have a combination of I(0) and I(1) orders of
integration, while the dependent variable CCOR is integrated of order one.
Therefore, the most adequate estimating technique is PMG-ARDL.
Table 3. Panel unit root test results
IPS
Variable
Level
P-value
First difference
P-value
Order of
integration
CCOR
0.0517
0.0000
I(1)
GDPperCAP
1.0000
0.0146
I(1)
EXPG
0.0020
0.0000
I(0)
ICT
0.9000
0.0000
I(1)
(Source: Author’s own determination using STATA
The dependent variable is the control of corruption CCOR. The
independent variables are GDP per capita, government expenses and ICT
employment of total. We conduct PMG and MG techniques and in order to choose
the best model, we apply the long- run Hausman test. The null hypothesis of the
long-run Hausman test is that the PMG estimator is the most efficient versus the
alternative hypothesis that the MG estimator is the most efficient. Since the p-value
of the long-run Hausman test is 0.98>0.05 (Table 4), we cannot reject the null
The influence of the ICT on the control of corruption in public administrations
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hypothesis and we adopt the PMG estimator. It follows that only the results of the
PMG estimator are discussed. The PMG estimator can be considered the most
efficient instrument because at the EU level, the long term ICT-control of
corruption nexus should be targeted homogeneously, while on short term, each
country should be analyzed independently, heterogeneously. In other words, on
short term, each country should adopt its own strategy to fight corruption, while on
long term, at the EU level, by EU policies, reducing corruption should be a
common target (Boufateh and Saadaoui, 2020). Table 4 contains the estimations of
the long-run elasticities, the short-run coefficients and the speed of adjustment to
the long-run equilibrium.
The coefficient of the error correction term -0.59 is negative, greater than -
2 and statistically significant at 1% level. It means that the speed of adjustment
towards the long run equilibrium is about 59% over each year. From the error
correction term one can infer joint causality of the variables, that is, all variables
jointly have a long run effect on the dependent variable CCOR. The long term
elasticity of GDP per capita relative to CCOR is almost zero and significant at 1%
level. The long term elasticity of ICT relative to CCOR is positive and significant
at 1% level. The coefficient associated with governmental expenses proves
insignificant.
Regarding the short term component (Table 4), the results proved that the
coefficients are not significant, implying that on short term, control of corruption is
not influenced by neither of the independent variables.
A change in GDP per capita of 1% would lead to an insignificant increase
of about 0.000043% in CCOR in the long run. In figure 2 we can see that during
2010-2019 there is a linear positive relation between GDP per capita and control of
corruption. This hypothesis is confirmed by Lučić et al. (2016), who use a sample
of 40 world countries for the period 1995-2011 and noticed that a change in GDP is
deferred six to 10 years after changes in the levels of corruption and vice versa.
A change in ICT of 1% would lead to an increase of about 0.87% in CCOR
in the long run. This could be interpreted that ICT could be a tool to combat
corruption, findings also supported by the works of Darusalam et al. 2021, Ben Ali
and Gasmi, 2017, Sasi and Ben Ali, 2017.
Table 4. The PMG and MG estimators
PMG
MG
Variables
Long Run
Short Run
Long Run
Short Run
Error Correction
Term (ECT)
-0.59
-2.56
(0.00)
(0.07)
ΔGDPperCAP
-8.66e-06
0.015
(0.97)
(0.26)
ΔEXPG
-0.02
4.3
(0.87)
(0.33)
ΔICT
0.59
4.85
The influence of the ICT on the control of corruption in public administrations
of the EU member states: a comparative analysis based on panel data
52 ADMINISTRAȚIE ȘI MANAGEMENT PUBLIC 37/2021
PMG
MG
Variables
Long Run
Short Run
Long Run
Short Run
(0.37)
(0.51)
GDPperCAPt-1
0.000043
-0.000064
(0.06)
(0.87)
EXPGt-1
0.047
-0.44
(0.27)
(0.11)
ICTt-1
0.87
-1.81
(0.02)
(0.75)
Constant
43.89
285.48
(0.00)
(0.18)
Hausman test
0.04
(0.98)
(Source: Author’s own determination using STATA)
A two-way scatter plot can be used to show the relationship between ICT
and CCOR. As we would expect, there is a positive relationship between ICT and
CCOR, as can be seen in Figure 1.
Figure 1. The relationship between ICT and CCOR
50 60 70 80 90 100
CCOR
2 4 6 8
ICT
(Source: Author’s own determination using STATA)
The influence of the ICT on the control of corruption in public administrations
of the EU member states: a comparative analysis based on panel data
ADMINISTRAȚIE ȘI MANAGEMENT PUBLIC 37/2021 53
A two way scatter plot can be used to show the relationship between
GDPperCAP and CCOR. As we would expect, there is a positive relationship
between GDPperCAP and CCOR, as can be seen in figure 2.
Figure 2. The relationship between GDP per CAPITA and CCOR
50 60 70 80 90 100
CCOR
20000 40000 6 0000 80000 100000 120000
GDPperCAP
(Source: Author’s own determination using STATA)
3. Conclusions
This paper presents a panel data ARDL model in which the determinants of
corruption are GDP per capita and ICT. The study proposed PMG and MG
techniques in order to determine the long and short run relationships between the
variables. Applying the long run Hausman test, it followed that the PMG estimator
is the most efficient. On short term, we obtained that the coefficients are not
significant, implying that control of corruption is not influenced by neither of the
independent variables. On long term, the speed of adjustment towards the long run
equilibrium is about 59% over each year. From the error correction term one can
infer joint causality of the variables, that is, all variables jointly have a long run
effect on the dependent variable CCOR.
If we take the explanatory variables separately, the long term elasticity of
GDP per capita relative to CCOR is positive, tending to zero and significant at 1%
level. Overall, according to Figure 2, the relation between CCOR and GDPperCAP
is positive. The long term elasticity of ICT relative to CCOR is positive and
significant at 1% level. The coefficient associated with governmental expenses
proves insignificant.
In order to reduce corruption and to be able to respond better in similar
situations in the future, it is necessary to strengthen supervisory institutions to
The influence of the ICT on the control of corruption in public administrations
of the EU member states: a comparative analysis based on panel data
54 ADMINISTRAȚIE ȘI MANAGEMENT PUBLIC 37/2021
ensure that resources reach those most in need. Anti-corruption authorities and
supervisory institutions must have sufficient funds, resources and independence to
carry out their duties. An open and transparent public procurement system is
needed to combat illegalities, identify conflicts of interest and ensure fair prices
(Mackey & Cuomo, 2020).
Democratic institutions must defend democracy and provide the necessary
civic space to create the conditions under which governments can be held
accountable. Publishing relevant data and guaranteeing access to public
information must become a continuous practice (Lewis et al., 2020; Lima & Delen,
2020). The widespread integration of ICT and the development of IT applications
for administration in the government cloud are both a priority and a necessity in
most Member States.
Research shows that although there are differences in the pace and degree
of absorption of ICT in the administration, most states, even those advanced in the
computerization process, have problems of transparency and corruption in the
public sector, which must be managed with professionalism and innovative
intelligence.
Authors Contributions
The authors listed have made a substantial, direct and intellectual
contribution to the work, and approved it for publication.
Conflict of Interest Statement
The authors declare that the research was conducted in the absence of any
commercial or financial relationships that could be construed as a potential conflict
of interest.
Acknowledgment
This is an extended version of a paper presented at the 17th Administration
and Public Management International Conference, 15-16th October 2021,
Bucharest, Romania.
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