Faculty Mentor(s) Name(s)
Dr. Brooke Conaway
Abstract
Many developing and undeveloped countries, grappling with issues such as hyperinflation, corruption, high unemployment rates, poverty, and financial instability, often view dollarization as a potential solution. Dollarization involves adopting the US currency as the official or parallel currency, a strategy observed in countries like El Salvador, Ecuador, and Zimbabwe. The purpose of this research is to compare the impact of dollarization on real gross domestic product (RGDP) to that of countries that did not adopt dollarization. My results indicate that dollarization does indeed affect economic growth. These findings demonstrate that dollarized countries experience a higher percentage change in RGDP compared to countries that did not adopt dollarization.
Start Date
27-3-2024 1:30 PM
End Date
27-3-2024 1:38 PM
Location
Atkinson 107
Included in
Econometrics Commons, Education Economics Commons, Growth and Development Commons, International Economics Commons, Macroeconomics Commons, Other Economics Commons
Does Dollarization have an impact on economic growth?
Atkinson 107
Many developing and undeveloped countries, grappling with issues such as hyperinflation, corruption, high unemployment rates, poverty, and financial instability, often view dollarization as a potential solution. Dollarization involves adopting the US currency as the official or parallel currency, a strategy observed in countries like El Salvador, Ecuador, and Zimbabwe. The purpose of this research is to compare the impact of dollarization on real gross domestic product (RGDP) to that of countries that did not adopt dollarization. My results indicate that dollarization does indeed affect economic growth. These findings demonstrate that dollarized countries experience a higher percentage change in RGDP compared to countries that did not adopt dollarization.