Dollarization and the relationship between EMBI and fundamentals in Latin American countries

Lorena Mari del Cristo () and Marta Gómez-Puig
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Lorena Mari del Cristo: Department of Economic Theory, Universitat de Barcelona

No 2014-02, Working Papers from Universitat de Barcelona, UB Riskcenter

Abstract: This paper presents empirical evidence on the interrelationship that exists between the evolution of the Emerging Markets Bonds Index (EMBI) and some macroeconomic variables in seven Latin American countries; two of them (Ecuador and Panama), full dollarized. We make use of a Cointegrated Vector framework to analyze the short run effects from 2001 to 2009. The results suggest that EMBI is more stable in dollarized countries and that its evolution influences economic activity in non-dollarized economies; suggesting that investors confidence might be higher in dollarized countries where real and financial economic evolution are less tied than in non-dollarized ones.

Keywords: Dollarization; emerging markets; Latin American countries; Cointegrated VAR; EMBI; exchange rate regime (search for similar items in EconPapers)
Pages: 35 pages
Date: 2014-02
New Economics Papers: this item is included in nep-lam, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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http://www.ub.edu/rfa/research/WP/UBriskcenterWP201402.pdf First version, 2014 (application/pdf)

Related works:
Journal Article: Dollarization and the relationship between EMBI and fundamentals in Latin American Countries (2017)
Working Paper: Dollarization and the relationship between EMBI and fundamentals Latin American countries (2014)
Working Paper: Dollarization and the Relationship Between EMBI and Fundamentals Latin American Countries (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:bak:wpaper:201402

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