Limits to Cashless Payments and the Persistence of Cash. Hypotheses About Mexico

Ángel, Gustavo A. Del

doi:10.1057/978-1-137-60231-2_12

Cited by 7 publications

(3 citation statements)

References 2 publications

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“…Informality explains the limited demand for offshore money laundering services too. It makes Mexico a largely cash-based economy (Del Angel, 2016 ). The use of cash, internationally going down, is on the rise in Mexico (FATF & GAFILAT, 2018 ).…”

Section: Power Without Plenty: Taxation and Banking In Mexicomentioning

confidence: 99%

All exclusive: the politics of offshore finance in Mexico

Binder

2019

Review of International Political Economy

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At first sight, Mexico appears to be a textbook example of a state affected by offshore finance. Offshore financial services allow corporations and the wealthy to plan taxes, avoid regulations or to launder money. The literature holds that large, developing, open economies, with geographical proximity to offshore centers and problems of crime and corruption are particularly affected by offshoring. By this logic, we should expect Mexico to show a significant demand for offshore financial services. Yet, new empirical evidence derived from interviews and banking statistics suggests otherwise. Mexican firms and individuals make only limited use of offshore finance. The article explains why. Building on a Weberian notion of the state, the article shows that the historically exclusive nature of Mexico's state concentrates political and economic power such that the onshore economy offers similar rents for economic elites as offshoring. Moreover, in instances where economic actors use offshore services it is driven by banking, not taxation. These findings have two theoretical implications. First, they confirm that institutions matter, though differently than hitherto thought. Second, we must look beyond taxation to include banking into our analyses.

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Section: Power Without Plenty: Taxation and Banking In Mexicomentioning

confidence: 99%

All exclusive: the politics of offshore finance in Mexico

Binder

2019

Review of International Political Economy

View full text Add to dashboard Cite

show abstract

“…At the other extreme, the lack of access to such infrastructure for significant parts of the population in Mexico has likely limited the possibility for those people to use instant payments. Statistics show that only 2.6% of the total number of mobile phone subscribers had access to mobile banking (Angel, 2016).…”

Section: It and Telecommunications Infrastructurementioning

confidence: 99%

“…Cheque usage -although decreasing -is still quite high, and at the POS as well as in the informal economy cash is heavily used (Jones, 2017). This informal economy is widespread: between 2013 and 2016, its contribution to GDP was between 27% and 29% (Angel, 2016). Studies have determined a correlation between informality and low financial inclusion.…”

Section: Behavioural Aspectsmentioning

confidence: 99%