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What Factors Keep Cash Alive in the European Union?

Author

Listed:
  • Yulia Titova

    (IÉSEG School of Management)

  • Delia Cornea

    (EBS Paris/INSEEC U. Research Center)

  • Sébastien Lemeunier

    (EBS Paris/INSEEC U. Research Center)

Abstract

This paper aims to analyze the determinants of cash usage in a selection of European Union (EU) countries over the 2003–2016 period, based on a set of technological, socioeconomic, and socio-cultural indicators and cost components. Our results reveal the existence of both common and region-specific determinants for the EU advanced and Central and Eastern European (CEE) countries. In both groups cash usage is determined by payment system characteristics. Additionally, in the EU advanced countries cash usage can also be explained by the level of economic development and income inequalities and proliferation of Internet. In contrast, cash usage in CEE countries is negatively associated with consumer confidence and is inversely related to the technological progress, expressed in terms of mobile users.

Suggested Citation

  • Yulia Titova & Delia Cornea & Sébastien Lemeunier, 2021. "What Factors Keep Cash Alive in the European Union?," De Economist, Springer, vol. 169(3), pages 291-317, August.
  • Handle: RePEc:kap:decono:v:169:y:2021:i:3:d:10.1007_s10645-021-09384-3
    DOI: 10.1007/s10645-021-09384-3
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