Impact of E-Government on Transaction Cost and FDI Inflows: A Proposed Conceptual Framework

Although vast normative e-government literature supports the assertion that implementation of e-government reduces transaction cost and promotes Foreign Direct Investment; empirical evidence to support this thesis is limited. Even more, there is limited attempt when studying this phenomenon to integrate e-government literature with other literatures in which major constructs of interest are rooted. This article contributes to reducing this gap by establishing a conceptual framework that integrates e-government literature, International Business and Economics literatures as the main fields from which major constructs of interest are grounded. Three Propositions are generated as a guide for a systematic empirical investigation of the phenomenon.