Empirical Study On Cash Substitution By Consumption Via Bankcards In China

Bankcard is the combined product of traditional finance operations and modern information techniques.It is a very common means of payment and consumer credit in the developed countries. Bankcard development in our country is still on the initial statge.In 1985,the first bankcard was issued by Bank of China,it indicated that the industry of bankcard was set up,and a new consumption patterns entered into China.Bankcard has the function of cash deposit and withdrawl ,fund transfer and consumption credit. It not only changs the way people used to pay,brings convenience to card holders,but also shows positive influence on the growth of GDP growth. After years of development, especially with the promotion thoroughly of"The Project of Gold Card", the industry of bankcard in China has made great progress and bankcard payment has been used more and more broadly.Consumption via bankcards has already substituted cash and the effect of bankcard is significant.Therefore,making research on the cash substitution by consumption via bankcards has an important and practical meaning for improving the development of bankcard industry in China.This paper is on the basis of the research which is made by scholars both domestic and overseas.It introduces the theoretical foundation of bankcard and the bankcard industrial development status in our country, it conducts empirical test the substitution of consumption via bankcands with cash and researches the impact of bankcard.This paper establishes econometric models with variables of bankcard and cash.Applying the data of bankcard from 1993 to 2008 of China,it conducts empirical test the substitution of consumption via bankcands with cash.The experimental analysis shows that the consumption via bankcands has already substituted cash in our country,and the relationship between bankcard and cash is stable. However, the environment of bankcard in China needs to improve. With the development of card environment, the role of bankcard will become increasingly evident.Consumption via bankcands has already substituted cash in our country,this paper also analyses the impact of bankcard on the currency policy and people's economic lives.To the problem of bankcard industry in our country,this paper will put forwards some ideas.