Does transitioning to a digital economy imply lower levels of corruption?

Abstract The link between information and communications technology (ICT) and corruption has been discussed by a few authors, yet a macro‐level analysis of the link coupled with an examination of the link between ICT, stage of economic development, and countries' specific factors has not been fully explored. With panel data of 147 countries over a seven‐year period from 2013 to 2019, we find that countries that have transitioned from a natural‐resource‐based to an innovation‐driven, digital economy experience lower levels of corruption. A country's level of corruption is negatively related to ICT measures such as internet penetration and e‐government. Moreover, ICT appears to reinforce the role of press freedom and education in curbing corruption.