IDEAS home Printed from https://ideas.repec.org/a/spt/admaec/v11y2021i3f11_3_6.html
   My bibliography  Save this article

Electronic Money and Consumer Spending Behaviour: Evidence from Ghana

Author

Listed:
  • Michael N.A. Mensah
  • Adusei Jumah

Abstract

This study examines how e-money usage affects consumer spending behaviour through discrete choice analysis considering demographic characteristics. It also assesses people’s attitudes towards the challenges and benefits of using e-money through ANOVA. Our analyses indicate that e-money significantly impacts consumer spending behaviour, with the type of e-money and the expenditure made with e-money both influencing the consumers’ expenditures. Gender, age, and employment status also affected consumers’ spending behaviour as expected. However, the length of e-money usage had no effect. Interestingly, the respondents’ challenges associated with using e-money had no significant effect on the frequency of e-money usage. On the contrary, the derived benefits of using e-money had significant effects. JEL classification numbers: C25, D12, E42.

Suggested Citation

  • Michael N.A. Mensah & Adusei Jumah, 2021. "Electronic Money and Consumer Spending Behaviour: Evidence from Ghana," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 11(3), pages 1-6.
    • Handle: RePEc:spt:admaec:v:11:y:2021:i:3:f:11_3_6
    as

    Download full text from publisher

    File URL: http://www.scienpress.com/Upload/AMAE%2fVol%2011_3_6.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Freedman, Charles, 2000. "Monetary Policy Implementation: Past, Present and Future--Will Electronic Money Lead to the Eventual Demise of Central Banking?," International Finance, Wiley Blackwell, vol. 3(2), pages 211-227, July.
    2. Katharine Vincent & Tracy Cull, 2011. "Cell phones, electronic delivery systems and social cash transfers: Recent evidence and experiences from Africa," International Social Security Review, John Wiley & Sons, vol. 64(1), pages 37-51, January.
    3. Horne, Matt & Jaccard, Mark & Tiedemann, Ken, 2005. "Improving behavioral realism in hybrid energy-economy models using discrete choice studies of personal transportation decisions," Energy Economics, Elsevier, vol. 27(1), pages 59-77, January.
    4. Calem, Paul S & Mester, Loretta J, 1995. "Consumer Behavior and the Stickiness of Credit-Card Interest Rates," American Economic Review, American Economic Association, vol. 85(5), pages 1327-1336, December.
    5. Evans David S. & Pirchio Alexis, 2014. "An Empirical Examination of Why Mobile Money Schemes Ignite in Some Developing Countries but Flounder in Most," Review of Network Economics, De Gruyter, vol. 13(4), pages 397-451, December.
    6. Edward C. Norton & Hua Wang & Chunrong Ai, 2004. "Computing interaction effects and standard errors in logit and probit models," Stata Journal, StataCorp LP, vol. 4(2), pages 154-167, June.
    7. Kevin Washbrook & Wolfgang Haider & Mark Jaccard, 2006. "Estimating commuter mode choice: A discrete choice analysis of the impact of road pricing and parking charges," Transportation, Springer, vol. 33(6), pages 621-639, November.
    8. Anderson, Soren & Newell, Richard G., 2003. "Simplified marginal effects in discrete choice models," Economics Letters, Elsevier, vol. 81(3), pages 321-326, December.
    9. Sarah Rotman, 2014. "Bitcoin Versus Electronic Money," World Bank Publications - Reports 18418, The World Bank Group.
    10. Steven T. Berry, 1994. "Estimating Discrete-Choice Models of Product Differentiation," RAND Journal of Economics, The RAND Corporation, vol. 25(2), pages 242-262, Summer.
    11. Freedman, 2000. "Monetary Policy Implementation: Past, Present and Future – Will Electronic Money Lead to the Eventual Demise of Central Banking?," International Finance, Wiley Blackwell, vol. 3(2), pages 211-227, July.
    12. Mr. Marco Arnone & Mr. Luca Bandiera, 2004. "Monetary Policy, Monetary Areas, and Financial Development with Electronic Money," IMF Working Papers 2004/122, International Monetary Fund.
    13. Michael Woodford, 2000. "Monetary Policy in a World Without Money," International Finance, Wiley Blackwell, vol. 3(2), pages 229-260, July.
    14. Michael Clark & Domino Determann & Stavros Petrou & Domenico Moro & Esther Bekker-Grob, 2014. "Discrete Choice Experiments in Health Economics: A Review of the Literature," PharmacoEconomics, Springer, vol. 32(9), pages 883-902, September.
    15. Karthik Balasubramanian & David F. Drake, 2015. "Service Quality, Inventory and Competition: An Empirical Analysis of Mobile Money Agents in Africa," Harvard Business School Working Papers 15-059, Harvard Business School, revised Oct 2015.
    16. Ai, Chunrong & Norton, Edward C., 2003. "Interaction terms in logit and probit models," Economics Letters, Elsevier, vol. 80(1), pages 123-129, July.
    17. Hirschman, Elizabeth C, 1979. "Differences in Consumer Purchase Behavior by Credit Card Payment System," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 6(1), pages 58-66, June.
    18. Brownstone, David, 2001. "Discrete Choice Modeling for Transportation," University of California Transportation Center, Working Papers qt29v7d1pk, University of California Transportation Center.
    19. Hendy Mustiko Aji & Izra Berakon & Maizaitulaidawati Md Husin, 2020. "COVID-19 and e-wallet usage intention: A multigroup analysis between Indonesia and Malaysia," Cogent Business & Management, Taylor & Francis Journals, vol. 7(1), pages 1804181-180, January.
    20. William Jack & Tavneet Suri & Robert M. Townsend, 2010. "Monetary theory and electronic money : reflections on the Kenyan experience," Economic Quarterly, Federal Reserve Bank of Richmond, vol. 96(1Q), pages 83-122.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Aysen Bakkaloglu & Yavuz Toraman, 2022. "Examining Individuals’ Attitudes Toward Electronic Money in the Framework of the Technology Acceptance Model," Journal of Economic Policy Researches, Istanbul University, Faculty of Economics, vol. 9(2), pages 475-494, July.
    2. Haydar Akyazi & Seyfettin Artan, 2006. "Reflections of the New Economy on the Monetary Policy and Central Banking," Papers of the Annual IUE-SUNY Cortland Conference in Economics, in: Oguz Esen & Ayla Ogus (ed.), Proceedings of the Conference on Human and Economic Resources, pages 373-387, Izmir University of Economics.
    3. Djaballah Mustapha, 2020. "The Relationship Between the Financial Innovation and the Money Supply: Empirical Study on the Maghreb Countries," Economics and Business, Sciendo, vol. 34(1), pages 168-178, February.
    4. C. Sardoni, 2006. "Why Central Banks (and Money) Rule the Roost," Economics Working Paper Archive wp_457, Levy Economics Institute.
    5. Thornton, Daniel L., 2014. "Monetary policy: Why money matters (and interest rates don’t)," Journal of Macroeconomics, Elsevier, vol. 40(C), pages 202-213.
    6. Haghani, Milad & Bliemer, Michiel C.J. & Hensher, David A., 2021. "The landscape of econometric discrete choice modelling research," Journal of choice modelling, Elsevier, vol. 40(C).
    7. BENNETT T. McCALLUM, 2008. "How Important Is Money in the Conduct of Monetary Policy? A Comment," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 40(8), pages 1783-1790, December.
    8. Korhonen, Tapio, 2001. "Finnish monetary and foreign exchange policy and the changeover to the euro," Research Discussion Papers 25/2001, Bank of Finland.
    9. Bennett T. McCallum, 2003. "Monetary Policy in Economies with Little or No Money," NBER Working Papers 9838, National Bureau of Economic Research, Inc.
    10. Kenneth N. Kuttner & James J. McAndrews, 2001. "Personal on-line payments," Economic Policy Review, Federal Reserve Bank of New York, issue Dec, pages 35-50.
    11. Arto Kovanen, 2019. "Competing With Bitcoin - Some Policy Considerations for Issuing Digitalized Legal Tenders," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 10(4), pages 1-16, July.
    12. Corrinne Ho, 2008. "Implementing monetary policy in the 2000s: operating procedures in Asia and beyond," BIS Working Papers 253, Bank for International Settlements.
    13. Sinelnikova-Muryleva, Elena (Синельников-Мурылева, Елена), 2018. "Analysis of the Consequences of the Development of Payment Systems for Monetary Policy in the Context of Deepening Financial Markets [Анализ Последствий Развития Платежных Систем Для Денежно-Кредит," Working Papers 031813, Russian Presidential Academy of National Economy and Public Administration.
    14. repec:zbw:bofrdp:2001_025 is not listed on IDEAS
    15. Mr. Saleh M. Nsouli & Connel Fullenkamp, 2004. "Six Puzzles in Electronic Money and Banking," IMF Working Papers 2004/019, International Monetary Fund.
    16. Zvonimir Bašić & Parampreet C. Bindra & Daniela Glätzle-Rützler & Angelo Romano & Matthias Sutter & Claudia Zoller, 2021. "The Roots of Cooperation," ECONtribute Discussion Papers Series 097, University of Bonn and University of Cologne, Germany.
    17. Sakaue, Katsuki, 2018. "Informal fee charge and school choice under a free primary education policy: Panel data evidence from rural Uganda," International Journal of Educational Development, Elsevier, vol. 62(C), pages 112-127.
    18. Carolin Bock & Maximilian Schmidt, 2015. "Should I stay, or should I go? – How fund dynamics influence venture capital exit decisions," Review of Financial Economics, John Wiley & Sons, vol. 27(1), pages 68-82, November.
    19. Duong, Huu Nhan & Kalev, Petko S., 2013. "Anonymity and order submissions," Pacific-Basin Finance Journal, Elsevier, vol. 25(C), pages 101-118.
    20. Chenxi Zhou & Jinhong Xie & Qi Wang, 2016. "Failure to Complete Cross-Border M&As: “To” vs. “From” Emerging Markets," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 47(9), pages 1077-1105, December.
    21. Janus, Thorsten & Riera-Crichton, Daniel, 2015. "Economic shocks, civil war and ethnicity," Journal of Development Economics, Elsevier, vol. 115(C), pages 32-44.

    More about this item

    Keywords

    Electronic money; Consumer behaviour; Discrete choice; Ordered logit.;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System

    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:spt:admaec:v:11:y:2021:i:3:f:11_3_6. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Eleftherios Spyromitros-Xioufis (email available below). General contact details of provider: http://www.scienpress.com/ .

    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.