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Analysis Of Trade On El Salvador Post Dollarization, Jorge Raul Rivera
Analysis Of Trade On El Salvador Post Dollarization, Jorge Raul Rivera
LSU Master's Theses
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 …