Exploring the linkage between e-government and green foreign direct investments in the European region

This study utilizes the Panel Vector Autoregressive (PVAR) and dynamic panel threshold models, using data from 32 countries from 2013 to 2022. E-government produces a negative response in the first two periods, followed by a transition to a positive response from approximately the third period onward, before stabilizing and converging to zero after about the fifth period. This pattern indicates a delayed positive adjustment in the long run, consistent with the time required for digital governance improvements to reduce informational frictions and enhance investment conditions. Furthermore, the quantity of e-government threshold is 0.105. Below the threshold, e-government has a positive impact on green FDI, while above the threshold, this effect becomes less positive. Policymakers should prioritize the gradual development of e-government systems to reach and maintain levels below the identified threshold, where digital governance most effectively supports green FDI, while ensuring that further advancements are accompanied by balanced regulatory frameworks to avoid diminishing marginal benefits.