What E-gov Systems should African Countries Invest in? A Panel Data Analysis

Can applying e-gov increase African countries’ FDI inflows? While e-gov has been proved to improve various aspects of governance, the link between e-gov and FDI inflows seems to be ignored by previous literature. At the same time, as an emerging economy, China’s outward FDI has increased steadily in recent years. However, China’s OFDI flows to Africa is relatively low compared with the flows to Asia and other industrialised economies. Leveraging the current literature, this study used institutional
factors by Kaufmann and indices of ease of doing business to explore how each institutional factor influenced by e-gov affect FDI inflows from China. This research argues that to attract more China’s FDI, African countries should invest in those factors which can influence FDI inflows, such as staring a new business and paying taxes. This study contributes to the literature by revealing the most influence factors for African countries to invest e-gov in to attract China’s OFDI.