Impact of a cashless economy in Kenya
Date
2021
Authors
Otieno, Sylvester Odhiambo
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
This study aims to look at the suitability of adopting a cashless economy on Kenya's
economy. The objectives of this study are to find the short-term relationship between cashless
payments in Kenya and the country's GDP and their overall long run effects. The first
objective oflooking at the short-term relationship is observed through a Vector
Autoregressive model (V AR). The long run relationship of cashless payments and Kenya is
observed through a Vector Error Correction Model (VECM) which also compliments the
shmi-term relationships. The variables included in the VAR and VECM are card payments,
mobile transactions and electronic fund transfers as independent variables and Real GDP as
the dependent variable. Granger Causality was used to check on the causality between the
different variables.
Description
Submitted in partial fulfillment for the requirement of the Degree of Bachelor of Business Science in Financial Economics at Strathmore University .