nep-pay New Economics Papers
on Payment Systems and Financial Technology
Issue of 2016‒09‒04
three papers chosen by
Bernardo Bátiz-Lazo
Bangor University

  1. Factors Influencing the Diffusion of Information and Communications Technology: Are Developing Countries Different? By Tara Mitchell
  2. The lack of boundaries resources hinders the growth of industrial internet By Castren, Klaus; Kortelainen, Aleksi; Seppälä, Timo
  3. Warehouse Banking By Giorgia Piacentino; Anjan Thakor; Jason Donaldson

  1. By: Tara Mitchell (Department of Economics, Trinity College Dublin)
    Abstract: This paper uses a logistic model of technology diffusion to investigate the relationship between rates of mobile phone, internet and broadband use and a number of economic, geographic and institutional variables, in a sample of 144 countries from 1990 to 2013. It pays particular attention to the differences in the process of diffusion between high- and low-income countries. The aim of the paper is to identify the main characteristics of countries that have had success in adopting these new technologies in order to gain some insight into the barriers which may be faced by those countries that have been less successful. The results suggest that there are important differences between high- and low-income countries in terms of the factors that influence the diffusion of digital technologies.
    Keywords: Digital divide, technology diusion, mobile phones, internet
    JEL: O1 O3 O33
    Date: 2016–09
  2. By: Castren, Klaus; Kortelainen, Aleksi; Seppälä, Timo
    Abstract: Abstract We analyze 51 medium-sized manufacturing industry companies identified by Ali-Yrkkö and Rouvinen in their earlier research in 2015. Currently, out of these 51 companies with a staff of 250–499 employees in 2013, none are using digital platforms for business network management. It is typical for digital platforms that different actors can create, provide and maintain complementary products and services to the various distribution channels and markets, within the framework of mutually agreed business and contract rules, technical bourdary resources and a predefined user experience. Only seven companies (14%) offer digitally featured products and services. Digital product and service features are charted by using 26 different Finnish and English search terms, such as ’internet of things’, ’sensor’, ’cloud service’ and ’preventive maintenance’. Finally we consider four strategic questions for open boundary resources.
    Keywords: Digital platforms, boundary resources, digital offering, Kemppi
    JEL: L6 L8 L86 L89
    Date: 2016–08–26
  3. By: Giorgia Piacentino (Olin Business School at Washington Unive); Anjan Thakor (olin school of business); Jason Donaldson (Washington University in St Louis)
    Abstract: This paper develops a theory of banking that is rooted in the evolution of banks from warehouses of commodities and precious goods, which occurred even before the invention of coinage or fiat money. The theory helps to explain why modern banks offer warehousing (custodial and deposit-taking) services within the same institutions that provides lending services and how banks create funding liquidity by creating private money. In our model, the warehouse endogenously becomes a bank because its superior storage technology allows it to enforce loan repayment most effectively. The warehouse makes loans by issuing “fake†warehouse receipts—those not backed by actual deposits— rather than by lending out deposited goods. The model provides a rationale for banks that take deposits, make loans, and have circulating liabilities, even in an environment without risk or asymmetric information. Our analysis provides new perspectives on narrow banking, liquidity ratios and reserves requirements, capital regulation, and monetary policy.
    Date: 2016

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