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Convertible local currencies and localisation: findings from a user survey and network analysis of local French currencies

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  • Oriane Lafuente-Sampietro

    (TRIANGLE - Triangle : action, discours, pensée politique et économique - ENS de Lyon - École normale supérieure de Lyon - UL2 - Université Lumière - Lyon 2 - IEP Lyon - Sciences Po Lyon - Institut d'études politiques de Lyon - Université de Lyon - UJM - Université Jean Monnet - Saint-Étienne - CNRS - Centre National de la Recherche Scientifique)

Abstract

This article will investigate the links between convertible local currencies (CLCs) and economic localisation. Following on the qualitative study by Marshall and O'Neil (2018), we will answer the following question: to what extent do convertible local currencies foster the localisation of procurement and production by creating new commercial relationships between businesses that use them? We will use data from a quantitative survey conducted by the Mouvement SOL, a French net- work of CLCs, for individual (n=1597) and provider (n=542) users of French CLCs. We will also address how new providers are found through the currency and analyse the change in con- sumption and production practices. This first analysis will be supported by a case study on the Eusko, the largest convertible local currency in France. The Eusko case makes it possible to cross-reference the survey data from Eusko users with the transaction data from digital Eusko users in order to evaluate whether the results of forming commercial relationships between companies are consistent across both sources. We will also use digital Eusko transaction data to run a network analysis, enabling us to observe the development of commercial relationships inside the community over time. We found that between one fourth to one third of businesses in a CLC network find new business partners in their CLC community, connecting with 3.5 new partners on average. These results are more encouraging than the absence of localisation found by Marshall and O'Neil (2018). Transaction data also allows us to determine which sectors benefit the most from the circulation of CLC and thus draw a conclusion on the capacity of the currency to move from the localisation of procurement to the localisation of production. Our results on this point are more balanced. The retail sector benefits the most from the circulation of Eusko and actors in this sector ex- change 40% of the CLC received into national currency, limiting the flow of income exchanged within the CLC.

Suggested Citation

  • Oriane Lafuente-Sampietro, 2021. "Convertible local currencies and localisation: findings from a user survey and network analysis of local French currencies," Working Papers halshs-03324630, HAL.
    • Handle: RePEc:hal:wpaper:halshs-03324630
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03324630
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    References listed on IDEAS

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    Keywords

    Economic localisation; Convertible local currency; Monnaie locale complémentaire; Monnaie alternative;
    All these keywords.

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