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Retail Payment And Economic Growth For Developed And Emerging European Countries


  • Aniela BOJAN

    () (Department of Finance, Faculty of Economics and Business Administration, "Babes-Bolyai" University, Cluj-Napoca, Romania)

  • Emilia-Anuta COROVEI

    () (Department of Finance, Faculty of Economics and Business Administration, "Babes-Bolyai" University, Cluj-Napoca, Romania,

  • Ioan TRENCA

    () (Department of Finance, Faculty of Economics and Business Administration, "Babes-Bolyai" University, Cluj-Napoca, Romania,


The purpose of this article is to identify the retail payment instruments that influence the economic growth. The present paper contributes to the strand of literature by showing the impact of payment market infrastructure from this new perspective. For this purpose we developed a panel framework consisting of 26 European countries that captures the relationship between economic growth and retail payment instruments. In order to analyze the impact of retail payments instruments we used a Panel Regression Model. The retail payment instruments used are: cash, all cards, direct debit, credit transfers and cheques. We find that these instruments have a positive impact on economic growth, with cash exception. The greatest impact on economic growth for developed countries it have cheques and for emerging countries it have cards.

Suggested Citation

  • Aniela BOJAN & Emilia-Anuta COROVEI & Ioan TRENCA, 2014. "Retail Payment And Economic Growth For Developed And Emerging European Countries," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 14, pages 119-127, December.
  • Handle: RePEc:aic:revebs:y:2014:d:14:bojana

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    References listed on IDEAS

    1. Hasan, Iftekhar & Koetter, Michael & Wedow, Michael, 2009. "Regional growth and finance in Europe: Is there a quality effect of bank efficiency?," Journal of Banking & Finance, Elsevier, vol. 33(8), pages 1446-1453, August.
    2. Wilko Bolt & David Humphrey & Roland Uittenbogaard, 2008. "Transaction Pricing and the Adoption of Electronic Payments: A Cross-Country Comparison," International Journal of Central Banking, International Journal of Central Banking, vol. 4(1), pages 89-123, March.
    3. Robert J. Barro, 2003. "Determinants of Economic Growth in a Panel of Countries," Annals of Economics and Finance, Society for AEF, vol. 4(2), pages 231-274, November.
    4. Berger, Allen N, 2003. " The Economic Effects of Technological Progress: Evidence from the Banking Industry," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 35(2), pages 141-176, April.
    5. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Oxford University Press, vol. 58(2), pages 277-297.
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    More about this item


    retail payment system; economic growth; random effects;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • G01 - Financial Economics - - General - - - Financial Crises
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages


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