The journey towards dollarization: the role of the tourism industry

Ibrahim Raheem and Kazeem Ajide ()

MPRA Paper from University Library of Munich, Germany

Abstract: There has been an increasing wave of globalization since the turn of the millennium. This study focuses on two by-products of globalization: dollarization and tourism. Empirical studies have ignored the possible relationship between dollarization and tourism. However, we hypothesize that a booming tourism industry will fuel increase in the usage and circulation of foreign currencies, thus increasing the level of dollarization. The objective of this study is to examine the extent to which the tourism industry exacerbates the dollarization process of selected Sub-sahara African (SSA) countries. Using Tobit regression, we found that tourism positively affects dollarization. Our results are robust to: (i) alternative measures of tourism; (ii) accounting for endogeneity and outlier effects.

Keywords: Dollarization; tourism; Subsaharan Africa (search for similar items in EconPapers)
JEL-codes: C1 E40 F31 (search for similar items in EconPapers)
Date: 2020-12
New Economics Papers: this item is included in nep-mon and nep-tur
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https://mpra.ub.uni-muenchen.de/105505/1/Annonymous.pdf original version (application/pdf)

Related works:
Working Paper: The Journey towards Dollarization: The Role of the Tourism Industry (2021)
Working Paper: The Journey towards Dollarization: The Role of the Tourism Industry (2021)
Working Paper: The Journey towards Dollarization: The Role of the Tourism Industry (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:105505

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