Institutions and financial dollarization: Indirect effects based on a policy experiment
Journal
Economics Letters
Date Issued
December 2013
Author(s)
DOI
10.1016/j.econlet.2013.09.027
Abstract
We provide evidence that institutional improvements lead to lower levels of financial dollarization through previously unidentified channels. These indirect channels operate in addition to the direct impact identified in the literature and further illustrate the importance of institutions for the extent of banking dollarization.