Local currencies : the context of their emergence : an explanatory model on the number of local currencies launched in France from 2007 to 2017

Abstract

The aim of this thesis was to identify the contextual factors that influence the creation of local currencies. To pinpoint these factors, two multiple linear regression models were developed in which the choice of the dependent variables was based on the literature review as well as on current and historical examples of established local currencies. The first model aimed at explaining the factors influencing the number of local currencies established in a region whilst the second model aimed at depicting the factors influencing the number of local currencies created annually at a national level. Data from France from 2007 until 2017 was used to test the hypotheses in both of the models. It was found that at a regional level, population size and organic agriculture influenced positively the creation of local currencies whilst higher income and an increased electricity consumption had a negative influence. Strong country debt, inflation and poverty rate were the three significant factors that were identified to increase the number of local currencies created annually at a national level.