City Research Online

Abstract

Digitization reforms have been hailed as an effective way of strengthening state capacity. However, digitization can also fundamentally reshape the organization of bureaucracies. Using a unique administrative dataset on agricultural taxation and surveys of local bureaucrats from Punjab, Pakistan, we show that digitization reforms can have unintended consequences for state capacity. We exploit the staggered rollout of the digitization of land records in Punjab to show that digitization had a negative effect on tax collection. The fall in taxes was not due to a decrease in the tax base. Instead, digitization affected the bureaucrats’ capacity to collect taxes.

Publication Type:	Article
Additional Information:	Copyright American Economic Association 2026; reproduced with permission.
Publisher Keywords:	Digitization, property rights, taxation, bureaucratic agency, bureaucracy, civil service, corruption, Punjab, Pakistan
Subjects:	D History General and Old World > DS Asia G Geography. Anthropology. Recreation > GA Mathematical geography. Cartography H Social Sciences > HB Economic Theory H Social Sciences > HC Economic History and Conditions H Social Sciences > HD Industries. Land use. Labor J Political Science > JQ Political institutions Asia Q Science > QA Mathematics > QA75 Electronic computers. Computer science
Departments:	School of Policy & Global Affairs School of Policy & Global Affairs > Department of Economics
SWORD Depositor:	Symplectic Administrator

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