Work detail

Transition to a Cashless Society: Impact on Economic Activity

Author: Aliya Berkimbayeva, BA,
Year: 2019 - summer
Leaders: prof. Ing. et Ing. Luboš Komárek Ph.D., MSc., MBA
Consultants:
Work type: Masters
MEF
Language: English
Pages: 79
Awards and prizes:
Link: https://is.cuni.cz/webapps/zzp/detail/203115/
Abstract: The present study aims to deliberate over a wider perspective on the topic of physical
currency, assuming the global conversion to digital payment instruments affecting
stakeholders at different scales alters number of aspects. The theoretical section
discusses the process of transition to cashless society by identifying transformation
stages and the barriers faced to undertake the shift. Subsequently, the links between
factors as business environment, globalization, and shadow economy in relation to
physical currency in circulation are examined by static and dynamic panel data
analyses applying annual panel data for 70 countries for the period from 2013 to 2017.
The conclusive inference is formulated based on outputs from the Blundell-Bond
(1998) system GMM estimator. The empirical results provide significant evidence on
negative relationship between business environment and physical currency in
circulation and contrary positive link for shadow economy. Further, the greater impact
of business environment on physical money among variables included, implies the
promotion of electronic money solutions solely to be not sufficient to transit to cashless
economy. We also construct transformation score ranking for the last five years to snap
the transit stage among countries included in the study with Singapore and Nordic
countries maintaining leading positions.

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