ABSTRACT
Dubious rent-seeking behaviour or corruption is a major economic development challenge for less developed countries as it diverts government expenditure from the dire needs of these countries to unproductive, wasteful, and illegal activities. It is widely acknowledged by policymakers and experts that information and communication technology (ICT) can play a dual role in enabling governments to manage their national resources and corruption more efficiently. This study examines the short- and long-run associations between ICT infrastructure, corruption control, and government expenditure in poorer countries over 2005–2019 using the vector error-correction model and the Granger causality test. Our results show that ICT infrastructure, corruption control, and government expenditure have strong endogenous links among each other in the short run. Empirical results also display that in the end ICT infrastructure and government expenditure are the important drivers of controlling corruption. These results suggest that a well-developed ICT infrastructure and favourable government expenditure are keys to managing and mitigating the risks associated with corrupt practices in these countries.
