Title page for ETD etd-11122007-135043

Type of Document Master's Thesis
Author Rivera, Jorge Raul
Author's Email Address jriver1@lsu.edu
URN etd-11122007-135043
Title Analysis of Trade on El Salvador Post Dollarization
Degree Master of Science (M.S.)
Department Agricultural Economics & Agribusiness
Advisory Committee
Advisor Name Title
Michael Dunn Committee Chair
Michael E. Salassi Committee Member
P Lynn Kennedy Committee Member
  • Dollarization
  • Gravity model
Date of Defense 2007-10-16
Availability unrestricted
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 had a positive effect on bilateral trade flows. The findings were not only large but statistically significant.

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