EFFECT OF CURRENCY REDESIGN ON SOCIO ECONOMIC DEVELOPMENT MEDIATED BY CASHLESS POLICY: A STUDY OF BAUCHI STATE NIGERIA
Sambo Abubakar
Volume 4 Issue 2
Abstract
This study investigates the effect of currency redesign on socio-economic development in Bauchi State, Nigeria, with cashless policy serving as a mediating factor. The study employs a quantitative approach, utilizing structural equation modeling (SEM) to analyze data collected from a sample of 349 participants in Bauchi State. The study examines three key constructs: currency redesign, cashless policy, and socio-economic development. A reflective measurement model is used to assess these constructs, with reliability and validity confirmed through Cronbach's alpha, composite reliability and average variance extracted (AVE) analyses. Results indicate that currency redesign has a significant direct effect on socio-economic development, with an R² value of 0.235. The cashless policy is found to partially mediate this relationship, demonstrating its role in enhancing the impact of currency redesign on socio-economic outcomes. The study's predictive relevance is confirmed through Q² values exceeding zero for both currency redesign and socio-economic development constructs. These findings contribute to the understanding of monetary policy effects in developing economies and highlight the importance of digital payment systems in facilitating economic growth. The study provides valuable insights for policymakers and financial institutions in Nigeria and similar developing countries, offering recommendations for effective currency management and promotion of cashless transactions to foster socio-economic development. Keywords: currency redesign, cashless policy, socio-economic development, Nigeria, structural equation modeling
Download Paper