IS THE E-GOVERNMENT A DRIVER OF FINANCIALIZATION: EMPIRICAL EVIDENCE FROM EUROPEAN COUNTRIES

This study is the first to empirically examine the linkage between e-Government and financial development. We utilize three indicators, including user centricity, business mobility, and key enablers to capture a digital process in the public sector, and their effects are analyzed on financial markets, institutions, and both. By employing an international sample of 26 European countries, we demonstrate the positive impacts of e-Government, especially the user centricity on the financialization. Furthermore, e-Government has the strongest influence on financial institutions.