How to Improve the Economic Effect of the Community Currency for Regional Revitalization: Case of Muju in Korea

This study examines the impact of consumer attitudes and subjective norms on the economic impacts of the Muju community currency for regional revitalization. The latent variables of consumer attitude and subjective norm are derived from the theory of reasoned action and measured based on the survey data and confirmatory factor analysis. Utilizing logistic regression and multivariate Tobit models, we found attitude is important for the two suggested substitution probabilities that are a consumption substitution from non-Muju to Muju area and online to Muju area. Whereas the subjective norm is crucial for an increasing volume effect that is an increasing consumption within the Muju area from using community currency. Considering the relatively low level of online purchase substitution and additional purchase probability and volume due to low level of consumer attitudes and norms, campaigns for the Muju community currency might improve the economic effect of community currency.