TY  - JOUR
AU  - Edwards,Sebastian
AU  - Magendzo,I. Igal
TI  - Strict Dollarization and Economic Performance: An Empirical Investigation
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 9820
PY  - 2003
Y2  - July 2003
UR  - http://www.nber.org/papers/w9820
L1  - http://www.nber.org/papers/w9820.pdf
N1  - Author contact info:
Sebastian Edwards
UCLA Anderson Graduate School of Business
110 Westwood Plaza, Suite C508
Box 951481
Los Angeles, CA 90095-1481
Tel: 310/206-6797
Fax: 310/206-5825
E-Mail: sebastian.edwards@anderson.ucla.edu
AB  - 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.
ER  -