Honors Theses
Date of Award
2010
Document Type
Undergraduate Thesis
Department
Management
First Advisor
Del Hawley
Relational Format
Dissertation/Thesis
Abstract
Dollarization is the abandonment of a nation’s domestic currency and the adoption of a foreign currency, which, in the case of this study, is the United States dollar. The topic of dollarization is pertinent to today’s global economy as globalization expands and countries become more inter reliant. This study is concentrated firstly on the dollarization of Ecuador. It investigates the events that led to dollarization, present effects on the economy, and the whether dollarization is sustainable. Secondly, the study examines the possible causes and effects of dollarization in Mexico as assisted by the review of dollarization in Ecuador. Through careful analysis it was discovered that should Mexico follow in Ecuador’s footsteps of dollarization, many of the effects felt by Ecuador will be mirrored by Mexico. These effects include reactions within the nation’s stock markets as well as an impact on entrepreneurship, international competition, and trade. Ultimately, this study reaches the conclusion that dollarization does not benefit nations to the extent that it is often merited for accomplishing. Thus, without a wide embracement of dollarization within a geographical region, it should not serve as an option to provide long-term stability. Hence, dollarization should not be implemented in Mexico’s future. The research conducted to accomplish the tasks of this study includes readings of scholarly articles regarding the Latin American economy, dollarization, and the implementation of the euro within the European Union. There was additional exploration 111 of the topics mentioned above by means of published books found at the J. D. Williams Library at the University of Mississippi as well as an interview with Mario Hayek, an entrepreneur in Ecuador. All of the references used in the analysis of this study can be found in the bibliography. Additional supporting materials that reference figures throughout the study as well as Mr. Hayek’s interview can be located in the Appendix.
Recommended Citation
Dugar, Kristen Elizabeth, "A Study of Dollarization in Ecuador and its Implications for the Future of the Mexican Economy" (2010). Honors Theses. 1990.
https://egrove.olemiss.edu/hon_thesis/1990
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