Impact of E-Government on Transaction Cost and FDI Inflows: A Proposed Conceptual Framework

  •  Muhajir Kachwamba    


Although vast normative e-government literature supports the assertion that implementation of e-government
reduces transaction cost and promotes Foreign Direct Investment; empirical evidence to support this thesis is
limited. Even more, there is limited attempt when studying this phenomenon to integrate e-government literature
with other literatures in which major constructs of interest are rooted. This article contributes to reducing this
gap by establishing a conceptual framework that integrates e-government literature, International Business and
Economics literatures as the main fields from which major constructs of interest are grounded. Three
Propositions are generated as a guide for a systematic empirical investigation of the phenomenon.

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