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Openness and Technology Diffusion in Payment Systems: The Case of NAFTA

Author

Listed:
  • Francisco Callado

    () (Departament d'Economia i Empresa, Universitat de Girona)

  • Jana Hromcová

    () (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona)

  • Natalia Utrero

    () (Departament d'Economia i Empresa, Universitat de Girona)

Abstract

We study the relationship between openness and payment system development. In particular, we analyze how the existence of technology diffusion from a more developed country fosters a transformation of payment choice in a less developed country. We apply our analysis to Mexico. Economic growth in Mexico was not high enough to cause a transformation of payment choice observed in the data after 2001. We argue that the switch towards electronic payments can be attributed to openness and related payment technology spillovers from the US in the context of NAFTA.

Suggested Citation

  • Francisco Callado & Jana Hromcová & Natalia Utrero, 2012. "Openness and Technology Diffusion in Payment Systems: The Case of NAFTA," Working Papers wpdea1206, Department of Applied Economics at Universitat Autonoma of Barcelona.
  • Handle: RePEc:uab:wprdea:wpdea1206
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    References listed on IDEAS

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    More about this item

    Keywords

    cash; payments; openness; NAFTA;

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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