Do Information Technology Investments Lead to Bigger or Smaller Governments? - Theory and Evidence in U.S. State Governments

34 Pages Posted: 28 May 2010 Last revised: 30 Jul 2015

See all articles by Min-Seok Pang

Min-Seok Pang

Temple University - Department of Management Information Systems

Date Written: January 10, 2011

Abstract

Government growth has been a long-standing research issue among public economists as well as an important concern of the general public. We investigate the impact of government IT investments on government growth. Drawing on the literature on public economics, political sciences, and IT value, we offer theoretical discussions and four mechanisms as to the relationship between IT investments and government expenditures, leading to propose the two competing hypotheses that IT investments either expand or shrink the amount of government expenditures. We test which prediction prevails in the context of U.S. state government with data on IT investments, state government finances, demography, and other institutional and socio-economical factors. The empirical investigations support the hypothesis that greater IT investments are associated with smaller state government size as a ratio to state gross domestic product.

Keywords: IT Value, Government Growth, U.S State Government, Theory of Bureaucracy

Suggested Citation

Pang, Min-Seok, Do Information Technology Investments Lead to Bigger or Smaller Governments? - Theory and Evidence in U.S. State Governments (January 10, 2011). Available at SSRN: https://ssrn.com/abstract=1616862 or http://dx.doi.org/10.2139/ssrn.1616862

Min-Seok Pang (Contact Author)

Temple University - Department of Management Information Systems ( email )

1810 N. 13th Street
Floor 2
Philadelphia, PA 19128
United States
215-204-3059 (Phone)

HOME PAGE: http://sites.google.com/site/minspang

Register to save articles to
your library

Register

Paper statistics

Downloads
148
Abstract Views
779
rank
305,910
PlumX Metrics