Strict Dollarization and Economic Performance: An Empirical Investigation

Sebastian Edwards () and I. Igal Magendzo

No 9820, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: 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.

JEL-codes: F30 F31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ifn and nep-lam
Date: 2003-07
Note: IFM
View list of references View citations in EconPapers

Downloads: (external link)
http://www.nber.org/papers/w9820.pdf (application/pdf)
Access to the full text is generally limited to series subscribers, however if the top level domain of the client browser is in a developing country or transition economy free access is provided. More information about subscriptions and free access is available at http://www.nber.org/wwphelp.html.

Related works:
Journal Article: Strict Dollarization and Economic Performance: An Empirical Investigation (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:nbr:nberwo:9820

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w9820
The price is Paper copy available by mail.

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc
Address: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Contact information at EDIRC.
Series data maintained by ().