Strict Dollarization and Economic Performance: An Empirical Investigation / Sebastian Edwards, I. Igal Magendzo.

Format:

Book

Author/Creator:

Edwards, Sebastian.

Contributor:

National Bureau of Economic Research.

Magendzo, I. Igal.

Series:

Working Paper Series (National Bureau of Economic Research) no. w9820.

NBER working paper series no. w9820

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Strict Dollarization and Economic Performance

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2003.

Summary:

In this paper we analyze the macroeconomic record of 'strictly dollarized' economies. In particular we investigate whether dollarized countries have historically exhibited faster growth and lower volatility than countries with a domestic currency. We analyze this issue by using a treatment regression analysis that estimates jointly the probability of being a dollarized country, and outcome equations. Our analysis indicates that the probability of being a dollarized country depends on regional, geographical, political and structural variables. Our results also suggest GDP per capita growth has not been statistically different in dollarized and in non-dollarized ones. We also find that volatility has been significantly higher in dollarized than in non-dollarized economies. These results are robust to the estimation technique, and to the sample used.

Notes:

Print version record

July 2003.