The Significance of Digital Transformation in Enhancing the Battle Versus Corruption

This study aims to elucidate the effects of digital transformation and governance measures on corruption levels in five North African countries, Algeria, Tunisia, Morocco, Egypt, and Mauritania, from 2003 to 2023. The feasible generalized least squares (FGLS) model is employed to address heterogeneity and autocorrelation. The principal component analysis is also used to construct a comprehensive digital transformation index, which consists of three variables: mobile phone subscriptions (per 100 individuals), Internet usage (% of the population), and fixed-line telephone subscriptions (per 100 individuals). The results show a negative correlation between digital transformation and corruption levels, with a coefficient of -0.0442967. The correlation between higher digital transformation rates and lower corruption levels is statistically significant at the 5% level (p-value = 0.020). The coefficient for government effectiveness is 0.4770349, signifying a substantial positive impact on corruption control, significantly significant at the 1% level (p-value < 0.001). A voice and accountability coefficient of 0.2258089 is significant at the 1% level (p < 0.001), indicating a positive and statistically significant relationship between voice, accountability, and corruption control. Political stability has a minor but statistically significant positive effect on corruption control, as indicated by a coefficient of 0.0526121, which is significant at the 5% level (p-value = 0.026). A rule-of-law coefficient of 0.1233174 demonstrates a positive relationship with corruption control. The Wald chi-squared statistic (818.41), with a p-value below 0.0001, suggests that the model is highly statistically significant, demonstrating that the explanatory variables collectively explain a considerable portion of the variation in corruption control among the analyzed countries. The AR (1) coefficient, uniform throughout all sections, is 0.5557, indicating a lack of autocorrelation in the panel data and confirming the model’s resilience. Thus, enhancements in digital infrastructure and services can significantly reduce corrupt practices by increasing transparency, streamlining government operations, and facilitating public access to information. The analysis confirms the positive impact of government effectiveness, voice and accountability, and political stability on the fight against corruption. These findings underscore the significance of effective governance and digital technologies in creating an environment conducive to reducing corruption. This study enriches the empirical literature by clarifying how digital transformation and improved governance might mitigate corruption in the Maghreb region and provide insights for policymakers seeking to foster economic development and integrity in public administration.