Analysis of Trade on El Salvador Post Dollarization
Dollarization has been suggested as an option for emerging economies. This policy might, among other goals, promote trade between a country adopting the dollar and the United States. Recent research suggests that adopting a common currency increases bilateral trade. Those findings have been widely critiqued for the lack of consistency over different currencies specially the case of dollarization.
This thesis is primarily concerned with the impact of dollarization in El Salvador regarding bilateral trade flows. Utilizing the framework of the Gravity Model, bilateral trade flows for 13 trading partners of El Salvador were examined. This study found that dollarization has had a positive effect on bilateral trade flows. The findings were not only large but statistically significant.
Advisor:P Lynn Kennedy; Michael Dunn; Michael E. Salassi
School:Louisiana State University in Shreveport
School Location:USA - Louisiana
Source Type:Master's Thesis
Keywords:agricultural economics agribusiness
Date of Publication:11/15/2007