THE IMPACT OF CASHLESS BANKING ECONOMIC POLICYON THE ECONOMIC GROWTHIN NIGERIA

Abstract

The study examines the impact of cashless banking economic policy on the economic growth in Nigeria. Data covering the period 1981-2013 was collected fromCentral Bank of Nigeria bulletin, the World Bank time series data was examined using Augmented Dickey Fuller test and Phillip Perrron unit root tests. The dependent variable is Real Gross Domestic Product growth The table shows that three stationary at first difference.Cash-Deposit ratio stationary at level; while GDP growth established to account if there is a long run relationship among the variables. It was discovered that the variables; the coefficient of cash-deposit ratio is positive. The implication of this is that as the economy goes cashless, the growth rate of real GDP declines and money supply has a positive relationship with the gross domestic product(make cashless policy mandatory in order to achieve an increase in economic growth.