IDEAS home Printed from https://ideas.repec.org/a/aag/wpaper/v27y2023i1p1-22.html
   My bibliography  Save this article

Impact of cashless bank payments on economic growth: Evidence from G7 countries

Author

Listed:
  • Muhammad Noman

    (Department of Management Sciences, Shaheed Zulfiqar Ali Bhutto Institute of Science and Technology, Larkana, Pakistan)

  • Alina Maydybura

    (Department of Business and Management, RIT Dubai, Dubai, UAE)

  • Khalil Ahmed Channa

    (Department of Business Administration, Sukkur IBA University, Sukkur, Sindh, Pakistan)

  • Wing-Keung Wong

    (Department of Finance, Fintech & Blockchain Research Center, and Big Data Research Center, Asia University)

  • Bisharat Hussain Chang

    (Department of Business Administration, Sukkur IBA University, Sukkur, Sindh, Pakistan)

Abstract

[Purpose] This paper examines the impact of cashless bank payments on the economic growth of G7 countries, namely Canada, Germany, Japan, France, Italy, the United Kingdom and the United States. [Design/methodology/approach] The paper employed annual data from 2012 to 2020 and the latest Panel ARDL model to examine the relationship described above. [Findings] The study's findings suggest that in the long run the cashless mode of payments considered in this study, which includes card & e-money, credit transfer and cheque, have a strong positive relationship with the real GDP of G7 countries. In the short run, card & e-money and cheque payments positively and significantly affect the real GDP. Credit transfer is found to have an insignificant relationship in the short run. [Originality/value] As the world is moving towards digitization and a cashless economy, the impact of cashless payments and digital finance is becoming an important topic for researchers. Further, existing literature focused only on European Countries that used traditional methodologies and provided mixed results. Therefore, this study aims to extend the existing literature in context of G7 countries by employing latest Panel ARDL model. [Practical implications] This study is beneficial for policymakers, in particular, of G7 countries, as it indicates the role of digitization and cashless payments in the growth and development of the economy.

Suggested Citation

  • Muhammad Noman & Alina Maydybura & Khalil Ahmed Channa & Wing-Keung Wong & Bisharat Hussain Chang, 2023. "Impact of cashless bank payments on economic growth: Evidence from G7 countries," Advances in Decision Sciences, Asia University, Taiwan, vol. 27(1), pages 1-22, March.
    • Handle: RePEc:aag:wpaper:v:27:y:2023:i:1:p:1-22
    as

    Download full text from publisher

    File URL: https://iads.site/impact-of-cashless-bank-payments-on-economic-growth-evidence-from-g7-countries/
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Huo, Dongxia & Bagadeem, Salim & Elsherazy, Tarek Abbas & Nasnodkar, Siddhesh Prabhu & Kalra, Akash, 2023. "Renewable energy consumption and the rising effect of climate policy uncertainty: Fresh policy analysis from China," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1459-1474.
    2. Lu, Man & Chang, Bisharat Hussain & Salman, Asma & Razzaq, Muthanna G. Abdul & Uddin, Mohammed Ahmar, 2023. "Time varying connectedness between foreign exchange markets and crude oil futures prices," Resources Policy, Elsevier, vol. 86(PB).
    3. Shiying Chen & Bisharat Hussain Chang & Hu Fu & ShiQi Xie, 2024. "Dynamic analysis of the relationship between exchange rates and oil prices: a comparison between oil exporting and oil importing countries," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-12, December.
    4. Andrej Privara & Raheel Gohar & Haitham M. Alzoubi & Akash Kalra & Mohammed Ahmar Uddin & Bisharat Hussain Chang, 2025. "Exploring exchange rate sensitivity to crude oil futures: A study of selected global economies," International Economics and Economic Policy, Springer, vol. 22(1), pages 1-21, February.

    More about this item

    Keywords

    Cashless bank payments; economic growth; G7 countries; Panel ARDL; cashless society; digital finance; financial inclusion;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O39 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Other
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aag:wpaper:v:27:y:2023:i:1:p:1-22. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Vincent Pan (email available below). General contact details of provider: https://edirc.repec.org/data/dfasitw.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.