The adoption and implementation of e-government, particularly during the COVID-19 pandemic, has demonstrated its significance in bolstering the pillars of good governance and fostering economic growth. This study employs an endogenous growth model to examine the impact of e-government, e-participation, and government quality on economic growth. Additionally, the study conducts a comprehensive literature review and utilizes reliable econometric techniques such as correlation tests, panel regression analysis, and causality tests. The study uses data from 27 European Union member countries from 2003 to 2022. Notably, the study is a novel empirical approach in a relevant field because it performs a compositional analysis of the impact of the subindexes of e-government, e-participation, and government quality on economic growth. The results suggest a strong relationship and interaction among e-government, e-participation, quality of governance, and economic development in European Union countries. Accordingly, the authors provide coherent policy recommendations to policymakers for better and more efficient governance, thereby improving a country’s economic prosperity.