An Analysis of the Effect of e-Government Readiness on Business Climate, Corruption Perception, and the Rate of New Entrepreneurs

This research aims to understand the relationship between e-government, business climate, corruption perception and its impact in the entrepreneurial activity. Data was collected from various databases, for the years 2008, 2010 and 2012, using panel data. The reports used were The Doing Business Report from World Bank, E-Government Survey from the United Nations, Corruption Perception Index by Transparence International and entrepreneurship data from Global Entrepreneurship Monitor. After joining the databases, correlation analysis and panel least squares regressions were performed. The results indicate that when a country is more “e-gov” ready, it may have a more dynamic business sector and less perception of corruption. The probable causes of the relationships are discussed, including suggestions for an integrative approach to allow developing countries to diminish the gap of e-government readiness. Future research to understand the difference of impact of e-government in developed and developing countries are also suggested.