Accelerating Digital Transformation Implementation in the Fight Against Corruption? Evidence From European Countries Before and During the COVID-19 Pandemic

ABSTRACT

The article is the first to empirically analyze the effects of digitalization on corruption prevalence by using a sample of 27 European countries over the period 2015-2020. The authors utilize the digital economy and society index capturing five diverse aspects of digital transformation connectivity, human capital, use of the internet, integration of digital technology, and digital public services to reflect digital performance. They also consider influences of specific digital activities, such as online transactions, business digitization, e-commerce, and e-government. The results indicate that digitalization, especially the use of internet services and digital public services, reduced the prevalence of corruption in European countries. However, the effect of digital transformation only appears in the long run. Notably, the authors highlight the importance of online administrative procedures on combating corruption, especially during the COVID-19 pandemic.