Not the usual suspects: Critical indicators in a dollarized country's Financial Stress Index

Layal Mansour Ishrakieh, Leila Dagher () and Sadika El Hariri
Authors registered in the RePEc Author Service: Layal Mansour Ichrakieh

Finance Research Letters, 2020, vol. 32, issue C

Abstract: In this paper we investigate the importance of the dollarization rate in heavily dollarized economies as one of the indicators in a Financial Stress Index. We use data on Lebanon, a middle-income developing country, considered to be one of the highest dollarized countries in the world to construct the first Financial Stress Index for Lebanon. Our findings indicate that the dollarization rate is the most important indicator for the FSI. This should be of relevance to many dollarized countries such as Bolivia, Peru, Uruguay, and others. Remarkably, none of the existing FSIs for dollarized countries has included the dollarization rate.

Keywords: Financial Stress Index; Financial crisis; Dollarization rate (search for similar items in EconPapers)
JEL-codes: E44 G01 G18 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Working Paper: Not the usual suspects: Critical indicators in a dollarized country's Financial Stress Index (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:32:y:2020:i:c:s1544612318307451

DOI: 10.1016/j.frl.2019.03.037

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