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Did dollarization help Ecuador?

Author

Listed:
  • Nicolás Cachanosky
  • Emilio Ocampo
  • Karla Hernández
  • John Ramseur

Abstract

This paper studies the impact on income per capita of dollarization in Ecuador using synthetic control analysis (SCA). The results support the hypothesis that dollarization can have a positive impact on economic growth. Such conclusion is very relevant for countries with high, persistent and volatile inflation considering dollarization as a currency regime.

Suggested Citation

  • Nicolás Cachanosky & Emilio Ocampo & Karla Hernández & John Ramseur, 2024. "Did dollarization help Ecuador?," CEMA Working Papers: Serie Documentos de Trabajo. 877, Universidad del CEMA.
    • Handle: RePEc:cem:doctra:877
    as

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    File URL: https://ucema.edu.ar/sites/default/files/2024-07/dt877.pdf
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    References listed on IDEAS

    as
    1. Cachanosky, Nicolás & Salter, Alexander W. & Savanti, Ignacio, 2022. "Can dollarization constrain a populist leader? The case of Rafael Correa in Ecuador," Journal of Economic Behavior & Organization, Elsevier, vol. 200(C), pages 430-442.
    2. Absher, Samuel & Grier, Kevin & Grier, Robin, 2020. "The economic consequences of durable left-populist regimes in Latin America," Journal of Economic Behavior & Organization, Elsevier, vol. 177(C), pages 787-817.
    3. Salvatore, Dominick & Dean, James W. & Willett, Thomas D. (ed.), 2003. "The Dollarization Debate," OUP Catalogue, Oxford University Press, number 9780195155365.
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    6. Arauz, Andrés & Garratt, Rodney & Ramos F., Diego F., 2021. "Dinero Electrónico: The rise and fall of Ecuador's central bank digital currency," Latin American Journal of Central Banking (previously Monetaria), Elsevier, vol. 2(2).
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    10. María Lorena Marí Del Cristo & Marta Gómez-Puig, 2016. "Fiscal sustainability and dollarization: the case of Ecuador," Applied Economics, Taylor & Francis Journals, vol. 48(23), pages 2139-2155, May.
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    Keywords

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    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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