Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/270680 
Year of Publication: 
2019
Citation: 
[Journal:] Cogent Economics & Finance [ISSN:] 2332-2039 [Volume:] 7 [Issue:] 1 [Article No.:] 1663699 [Year:] 2019 [Pages:] 1-21
Publisher: 
Taylor & Francis, Abingdon
Abstract: 
This study strengthens the frontiers of research on the drivers of dollarization in emerging economies by exploring the case of Ghana using the autoregressive distributed lag modelling framework. The data for the study spanned from January 2002 to March 2016. The evidence suggests that dollarization shares a common stochastic trend with exchange rates, inflation, interest rate differential, real output, and financial development. The analysis points to the important roles of exchange rate depreciation and financial development in the evolution of dollarization. Whereas depreciation induces a switch to the use of foreign currency, financial development diminishes the trend. Some policy recommendations to curtail the rising dollarization of the Ghanaian economy have been provided.
Subjects: 
dollarization
demand for money
autoregressive distributed lag model
cointegration
Ghana
JEL: 
E41
F21
F40
F41
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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