Dollarization and economic interdependence: The case of Ecuador

Abstract: Economic theory suggests that dollarization increases the degree of interdependence between the dollarized economy and the anchor country. We test this theory for the case of the U.S. and Ecuador. We perform cointegration and common cycles tests for data at the aggregate and industry level...

Descripción completa

Guardado en:

Detalles Bibliográficos
Autores principales:	Castillo-Ponce,Ramon A., Truong,Brian, Rodriguez-Espinosa,Maria de Lourdes
Lenguaje:	English
Publicado:	ILADES. Universidad Alberto Hurtado. 2021
Materias:	Dollarization Business Cycles Synchronization Economic Integration Financial Integration
Acceso en línea:	http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-88702021000100085
Etiquetas:	Agregar Etiqueta Sin Etiquetas, Sea el primero en etiquetar este registro!

id	oai:scielo:S0718-88702021000100085
record_format	dspace
spelling	oai:scielo:S0718-887020210001000852021-05-05Dollarization and economic interdependence: The case of EcuadorCastillo-Ponce,Ramon A.Truong,BrianRodriguez-Espinosa,Maria de Lourdes Dollarization Business Cycles Synchronization Economic Integration Financial Integration Abstract: Economic theory suggests that dollarization increases the degree of interdependence between the dollarized economy and the anchor country. We test this theory for the case of the U.S. and Ecuador. We perform cointegration and common cycles tests for data at the aggregate and industry levels. The results show that the economies of the U.S. and Ecuador were interrelated prior to dollarization. The interrelation increased after Ecuador adopted the U.S. dollar. This finding holds true for various Ecuadorian industries. Synchronization for the case of the financial industry is particularly revealing, as it shows how dollarization leads to the integration of financial markets.info:eu-repo/semantics/openAccessILADES. Universidad Alberto Hurtado.Revista de análisis económico v.36 n.1 20212021-04-01text/htmlhttp://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-88702021000100085en10.4067/S0718-88702021000100085
institution	Scielo Chile
collection	Scielo Chile
language	English
topic	Dollarization Business Cycles Synchronization Economic Integration Financial Integration
spellingShingle	Dollarization Business Cycles Synchronization Economic Integration Financial Integration Castillo-Ponce,Ramon A. Truong,Brian Rodriguez-Espinosa,Maria de Lourdes Dollarization and economic interdependence: The case of Ecuador
description	Abstract: Economic theory suggests that dollarization increases the degree of interdependence between the dollarized economy and the anchor country. We test this theory for the case of the U.S. and Ecuador. We perform cointegration and common cycles tests for data at the aggregate and industry levels. The results show that the economies of the U.S. and Ecuador were interrelated prior to dollarization. The interrelation increased after Ecuador adopted the U.S. dollar. This finding holds true for various Ecuadorian industries. Synchronization for the case of the financial industry is particularly revealing, as it shows how dollarization leads to the integration of financial markets.
author	Castillo-Ponce,Ramon A. Truong,Brian Rodriguez-Espinosa,Maria de Lourdes
author_facet	Castillo-Ponce,Ramon A. Truong,Brian Rodriguez-Espinosa,Maria de Lourdes
author_sort	Castillo-Ponce,Ramon A.
title	Dollarization and economic interdependence: The case of Ecuador
title_short	Dollarization and economic interdependence: The case of Ecuador
title_full	Dollarization and economic interdependence: The case of Ecuador
title_fullStr	Dollarization and economic interdependence: The case of Ecuador
title_full_unstemmed	Dollarization and economic interdependence: The case of Ecuador
title_sort	dollarization and economic interdependence: the case of ecuador
publisher	ILADES. Universidad Alberto Hurtado.
publishDate	2021
url	http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-88702021000100085
work_keys_str_mv	AT castilloponceramona dollarizationandeconomicinterdependencethecaseofecuador AT truongbrian dollarizationandeconomicinterdependencethecaseofecuador AT rodriguezespinosamariadelourdes dollarizationandeconomicinterdependencethecaseofecuador
_version_	1714206221864534016

Dollarization and economic interdependence: The case of Ecuador

Ejemplares similares