Unofficial dollarization and market integration : the case of Latin America (thesis)
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Date
2010Author
Boiles, Kathryn Paige
Subject
Washington and Lee University -- Honors in Economics
Dollar, American
Latin America
International economic integration
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Thesis; [FULL-TEXT FREELY AVAILABLE ONLINE] Kathryn Paige Boiles is a member of the Class of 2010 of Washington and Lee University. This study examines the relationship between unofficial dollarization and
goods market integration in the context of dollarizing Latin American
nations and the United States. While a breadth of research focuses on the
integrating effects of official currency union, no authors have yet
attempted to examine the associated link between "unofficial" currency
unions and market integration. Using disaggregate price data to measure
market integration and deposit dollarization data as a proxy for unofficial
dollarization, we find that Latin American nations with higher levels of
unofficial dollarization experience stronger market integration with the
United States. Though these high dollarizing countries are more
integrated with the United States, we find that this group is no more
integrated on the whole than its low dollarizing counterpart. Kathryn Paige Boiles