| Description |
1 online resource (40 pages) |
| Contents |
Cover; Contents; Abstract; I. INTRODUCTION; II. LITERATURE AND THEORY; III. MEASURING DOLLARIZATION AND FINANCIAL DEVELOPMENT; IV. METHOD; Policy variables in P; Structural variables in S; Dollarization variables in D; Estimation strategy; V. RESULTS; Financial Depth; Financial Access and Efficiency; Robustness; VI. CONCLUSION; VII. REFERENCES; TABLES; 1. The Impact of Dollarization on Financial Debt; 2. Dollarization and Financial Development in Countries with a History of High Inflation; 3. Dollarization and Financial Access and Efficiency; FIGURES; 1. Deposit and Credit Dollarization |
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2. Regional Average Deposit Dollarization3. Regional Average Credit Dollarization; 4. Deposit Dollarization in a Number of Countries; 5. Deposit vs. Credit Dollarization; 6. Deposit Dollarization and Financial Development; 7. Credit Dollarization and Financial Development; 8. Aggregate Mismatch between Deposit and Credit Dollarization and Financial Development; 9. Deposit Dollarization in Foreign Asset Ratios of Deposit Taking Banks; APPENDIX I: DATA; Country coverage; Dollarization; Financial development; Control and additional variables; TABLE; 1. Summary Statistics |
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APPENDIX II: ADDITIONAL RESULTSTABLES; 1. Dollarization and Financial Development with Dollarization and Its Determinants Predetermined; 2. Dollarization and Financial Development Relationship Estimated with Fewer Instruments; 3. Dollarization and Financial Development Using More Parsimonious Models; 4. Deposit Dollarization and Financial Depth, Access and Efficiency with FE and Difference GMM Estimators; 5. The Relationship between Dollarization and Financial Development in Countries with Deposit and Credit Dollarization Above 1 Percent |
| Summary |
Despite significant strides in financial development over the past decades, financial dollarization, as reflected in elevated shares of foreign currency deposits and credit in the banking system, remains common in developing economies. We study the impact of financial dollarization, differentiating across foreign currency deposits and credit on financial depth, access and efficiency for a large sample of emerging market and developing countries over the past two decades. Panel regressions estimated using system GMM show that deposit dollarization has a negative impact on financial deepening on average. This negative impact is dampened in cases with past periods of high inflation. There is also some evidence that dollarization hampers financial efficiency. The results suggest that policy efforts to reduce dollarization can spur faster and safer financial development |
| Notes |
Print version record |
| Subject |
Dollarization.
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General.
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Saving And Capital Investment.
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All Countries.
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| Form |
Electronic book
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| Author |
Turunen, Jarkko
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Gardberg, Malin
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| ISBN |
9781484376539 |
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1484376536 |
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