Dollarization and the "unbundling" of globalization in sub-Saharan Africa

Arbeitspapier

This study contributes to the dollarization literature by expanding its determinants to account for different dimensions of globalization, using the widely employed KOF index of globalization. Specifically, globalization is "unbundled" into three different layers namely : economic, social and political dimensions. The study focuses on 25 sub-Saharan African (SSA) countries for the period 2001-2012.Using the Tobit regression approach, the following findings are established. First, from both economic and statis tical relevance, the social and political dimensions of globalization constitute the key dollarization amplifiers, while the explanatory power of the economic component is weak er on dollarization. Second, consistent with the theoretical underpinnings, macroeconomic instabilities (such as inflation and exchange rate volatilities) have the positive expected signs. Third, the positive association between the accumulation of international reserves and dollarization is also apparent. Policy implications are discussed.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: AGDI Working Paper ; No. WP/18/034

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Demand for Money ; Open Economy Macroeconomics ; Single Equation Models; Single Variables: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions
• Thema: Dollarization ; Globalization ; sub-Saharan Africa ; Tobit regression

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Ajide, Kazeem Bello ; Raheem, Ibrahim Dolapo ; Asongu, Simplice
• Ereignis: Veröffentlichung
• (wer): African Governance and Development Institute (AGDI)
• (wo): Yaoundé
• (wann): 2018

Weitere Informationen

• Handle: http://hdl.handle.net/10419/204966
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ