Does Dollarization have an impact on economic growth?
Faculty Mentor(s) Name(s)
Dr. Brooke Conaway
Abstract
Many developing and undeveloped countries that deal with hyperinflation, corruption, high unemployment rate, poverty, and financial instability, often consider dollarization as a potential solution. Dollarization involves adopting the US currency as the official or parallel currency, which is a strategy observed in countries like El Salvador, Ecuador, and Zimbabwe. I anticipate finding positive impact of dollarization in economic growth. To analyze this, I used panel data primarily the The World Bank, Statista, and International Monetary Fund. Although, some data was difficult to find because of high corruption in some of these countries. My preliminary results suggest that dollarization is negatively associated with economic growth; however, I plan to use a one-year lag on dollarization to control for the fact that countries who choose to dollarize may do so because their economic growth is low.
Start Date
27-3-2024 1:30 PM
End Date
27-3-2024 1:38 PM
Location
Atkinson 107
Does Dollarization have an impact on economic growth?
Atkinson 107
Many developing and undeveloped countries that deal with hyperinflation, corruption, high unemployment rate, poverty, and financial instability, often consider dollarization as a potential solution. Dollarization involves adopting the US currency as the official or parallel currency, which is a strategy observed in countries like El Salvador, Ecuador, and Zimbabwe. I anticipate finding positive impact of dollarization in economic growth. To analyze this, I used panel data primarily the The World Bank, Statista, and International Monetary Fund. Although, some data was difficult to find because of high corruption in some of these countries. My preliminary results suggest that dollarization is negatively associated with economic growth; however, I plan to use a one-year lag on dollarization to control for the fact that countries who choose to dollarize may do so because their economic growth is low.