Template-type: ReDIF-Paper 1.0

Author-Name: Alberto Chong
Author-Workplace-Name: Department of Economics, Georgia State University and Department of Economics, Universidad del Pacifico
Author-Workplace-Email: achong6@gsu.edu

Author-Name: Soojin Kim
Author-Workplace-Name: Department of Economics, Georgia State University
Author-Workplace-Email: soojinkim@gsu.edu

Title: What About the Impact of Dollarization on Poverty and Inequality?

Abstract: Dollarization, often used to stabilize economies facing macroeconomic instability, has been studied for its macroeconomic impacts. However, its socio-economic consequences remain largely unexplored. This study addresses this gap by estimating the causal effects of dollarization on poverty and inequality. Using a dynamic panel data approach, we find that increased dollarization leads to higher poverty and inequality. We propose two potential pathways: an expanded informal sector and depressed consumption, due to dollarization.

Length: 35 pages

Creation-Date: 2025-03

File-URL: https://icepp.gsu.edu/files/2025/03/paper2506.pdf
File-Format: application/pdf

Handle: RePEc:ays:ispwps:paper2506