The Socioeconomic and Political Level of Development of Countries in View of Digitalization of Public Administration

Abstract

In the twenty-first century, the information revolution has led to the global digitalization of modern society, encompassing all countries of the world and leading to change in all spheres of human life, including economic, social and political. E-government makes the administrative process convenient, transparent, and fully accountable to the community, improving sociopolitical and democratic processes in the countries, and creating an effective information and technology platform for developing the business environment. In line with the administrative reform e-government is a strategic choice for the country, which aims to increase the competitiveness of the State and improve the well-being of its people. The article examines the influence of the level of digitalization on the level of socioeconomic and political development of countries. To test hypotheses, hierarchical agglomerative and iterative methods of cluster analysis, econometric models were used. The E-Government Development Index, Doing Business, The Global Competitiveness Index, The Social Progress Index for 114 countries for 2014–2019 were considered as the research information base. The results showed a significant positive effect of increasing the level of digitalization on the socioeconomic development and quality of political institutions of countries, which manifests itself with a different time lag. In addition, the results of an econometric analysis show that there is no difference in the intensity of the influence of the factor of digitalization in countries with different income levels. The results can be useful in the formation and adaptation of a strategy of socioeconomic development and competitiveness, in the assessment and systematic analysis of a digitalization strategy.