Measuring the Impact of Dollarization on Economic Growth in Ecuador Using the ARDL Autoregressive Model for the Period (1970-2021)
Keywords:
ARDL, dollarization, trade openness, investment
Abstract
The research aimed to know the impact of the policy of rotation on economic growth in Ecuador during the period (1970-2021) by adopting the autoregressive distributed lagi(ARDL) model. The independent variables in the model were dollarization, trade openness, investment, inflation, and net transfers from abroad. Like the dependent variable, economic growth is per capita GDP. One of the research's most notable conclusions is that dollarization had no appreciable effects on Ecuador's economic development, either in the short or long term, and the investment variable was the most influential in economic growth.
References
1. Dornbusch, Rudiger (2001). “Fewer Monies, Better Monies,” American Economic Review 91(2)
2. Rose, Andrew K. and Eric van Wincoop (2001). “National Money as a Barrier to International Trade: The Case for Currency Union” American Economic Review 91(2).
3. Campbell, Monica. 2003. “Dollarization – Adopting the Greenback Brings Mixed Fortunes.” The Banker (August 1): on-line.
4. Singh, Anoop. Stabilization and reform in Latin America: a macroeconomic perspective on the experience since the early 1990s. Vol. 238. Lippincott Williams & Wilkins, 2005.
5. Eduardo A. Morón & Diego Winkelried(2005) Monetary Policy Rules for Financially Vulnerable Economies, Journal of Development Economics, Vol. 76, No. 1.
6. Edwards, Sebastian and I. Igal Magendzo. 2003. “Strict Dollarization and Economic Performance: An Empirical Investigation.” NBER Working Paper 9820
7. M. Hashem Pesaran, Yongcheol Shin & Richard J. Smith(2001) Bounds Testing Approaches to the Analysis of Level Relationships, Journal of Applied Econometrics Vol. 16, No. 3, Special Issue in Memory of John Denis Sargan, 1924-1996: Studies in Empirical Macroeconometrics (May - Jun., 2001).
2. Rose, Andrew K. and Eric van Wincoop (2001). “National Money as a Barrier to International Trade: The Case for Currency Union” American Economic Review 91(2).
3. Campbell, Monica. 2003. “Dollarization – Adopting the Greenback Brings Mixed Fortunes.” The Banker (August 1): on-line.
4. Singh, Anoop. Stabilization and reform in Latin America: a macroeconomic perspective on the experience since the early 1990s. Vol. 238. Lippincott Williams & Wilkins, 2005.
5. Eduardo A. Morón & Diego Winkelried(2005) Monetary Policy Rules for Financially Vulnerable Economies, Journal of Development Economics, Vol. 76, No. 1.
6. Edwards, Sebastian and I. Igal Magendzo. 2003. “Strict Dollarization and Economic Performance: An Empirical Investigation.” NBER Working Paper 9820
7. M. Hashem Pesaran, Yongcheol Shin & Richard J. Smith(2001) Bounds Testing Approaches to the Analysis of Level Relationships, Journal of Applied Econometrics Vol. 16, No. 3, Special Issue in Memory of John Denis Sargan, 1924-1996: Studies in Empirical Macroeconometrics (May - Jun., 2001).
Published
2023-06-10
How to Cite
Bazzaz, N. H. S., & Ahmed, S. A. (2023). Measuring the Impact of Dollarization on Economic Growth in Ecuador Using the ARDL Autoregressive Model for the Period (1970-2021). International Journal on Economics, Finance and Sustainable Development, 5(6), 72-83. Retrieved from https://journals.researchparks.org/index.php/IJEFSD/article/view/4478
