Cashless Payments and Economic Growth: Evidence from Selected OECD Countries

Teck-Lee Wong (), Wee Yeap Lau and Tien-Ming Yip ()
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Teck-Lee Wong: Faculty of Economics and Administration, University of Malaya, Kuala Lumpur, Malaysia
Tien-Ming Yip: Faculty of Economics and Administration, University of Malaya, Kuala Lumpur, Malaysia

Journal of Central Banking Theory and Practice, 2020, vol. 9, issue special issue, 189-213

Abstract: This study investigates the relationship between cashless payments and economic growth in selected OECD countries. Using annual data from 2007 to 2016, our results indicate that: Firstly, cashless payment stimulates economic growth in OECD countries. Specifically, the growth-enhancing effect is found in debit card payment while credit card, e-money and cheque payment have no impact on economic growth; Secondly, the positive relationship between economic growth and debit card payment is robust after controlling for the effect of endogeneity, omitted variable bias and outliers. Based on the findings, this study offers some imperative policy recommendations.

Keywords: Cashless payments; Economic growth; Organisation for Economic Co-operation and Development (OECD); debit card payment (search for similar items in EconPapers)
JEL-codes: G20 G21 G23 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (2)

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