Global Advanced Research Journal of Management and Business Studies (GARJMBS) ISSN: 2315-5086 January 2013 Vol. 2(1), pp 022-036

Copyright © 2013 Global Advanced Research Journals   

 

Original Research Articles

Monetary Integration: Thirteen Years of Dollarization on Ecuadorian Economics, 2000-2013 

James Keeley1  and Adam Kess

1International Business and Financial Mathematics, ICP, Universidad Espiritu Santo (UEES), Guayaquil, Ecuador, SA.

2Financial Analyst, New York, USA.2Research assistant at the University of South Carolina. 

Corresponding author Email: jkeeley@uees.edu.ec 

Accepted 16 January2013

 

Abstract

A considerable amount of research has been carried-out over the past decade regarding the effects of dollarization on an economy.   While only time will tell if dollarization continues to sustain positive long-term impacts, the short-term has provided considerable evidence of a very successful monetary integration. This research paper has analyzed the sustained effects of dollarization on the Ecuadorian economy which began in the year 2000.  As an additional variable, tourism and tourism rates were analyzed due to their reach into each of these sectors of the Ecuadorian economic system and as the fastest growing industry in Ecuador.  The Central Bank of Ecuador and related data sets reveal that dollarization has not only had a profoundly positive effect on Ecuadorian economics, but has decreased the poverty rates across the board for almost every province within the country.  Finally, this research also analyzes tourism rates measurable by visitors arriving over time based on a retroactive vacation package price in an attempt to determine whether dollarization and/or inflation played a role in the tourism industry.  A correlational regression determined that neither dollarization nor inflation play a significant role in the Ecuadorian tourism industry. Because tourism is a growing industry in Ecuador, this determination could have policy implications regarding local legislation, the career choice of tourism among students, and fiscal projection which ultimately will enhance the overall economic condition.  Based on the analysis of the variables presented in this research, thirteen years of dollarization has led to a stabilized economy, lower rates of inflation, and positive effects of GPD (trade) in this robust agriculture producing South American country. 

Keywords: Tourism, Ecuador, Currency, US Dollar, Economy, Inflation, dollarization, economics.

Related Articles


Original Research Articles
V Munyati, J.P Musara, G. Chagwiza, Mafuse N, Parwada C and Chimvuramahwe J
Trends in Profitability and Measure of Government Protection in Sorghum Production ( Zimbabwe)
Glo. Adv. Res. J. Manage. Bus. Stud. September 2012 Vol: 1(7): - [Abstract] [Full Text - PDF] (267 KB)
Rusilanti Ari Istiany and Nur Riska
Water Consumption Pattern Profile and Dehydration Level on Elderly Living in Low Level Land and High Level Land
Glo. Adv. Res. J. Manage. Bus. Stud. July 2015 Vol: 4(7): - [Abstract] [Full Text - PDF] (125 KB)
Mária Timoracká, Judita Bystrická, Alena Vollmannová, Zuzana Poláková
Dynamics of rutin formation in amaranth (Amaranthus hypochondriacus L.) during vegetation.
Glo. Adv. Res. J. Manage. Bus. Stud. December 2014 Vol: 3(12): - [Abstract] [Full Text - PDF] (141 KB)
Dr Sher Ali, Mukamil Shah, Shahid li
Globalization and Macroeconomic Stability in Pakistan 1980 to 2010
Glo. Adv. Res. J. Manage. Bus. Stud. October 2015 Vol: 4(9): - [Abstract] [Full Text - PDF] (166 KB)
Bello M, Daudu S, Galadima OE, Anzaku TKA and AA Abubakar
Factors Influencing Adoption of Crop-Based Technologies in Jenkwe Development Area of Nasarawa State, Nigeria.
Glo. Adv. Res. J. Manage. Bus. Stud. October 2012 Vol: 1(8): - [Abstract] [Full Text - PDF] (182 KB)
Review
Orusha JO, Chikaire J, Onogu B, Tim- Ashama A, Alukogu CT, Ohuaka P and Nwaigwe MO
Investing in sound foundation education: A recipe for food security and poverty reduction in Nigeria
Glo. Adv. Res. J. Manage. Bus. Stud. June 2012 Vol: 1(5): - [Abstract] [Full Text - PDF] (174 KB)

Current Issue

Viewing Options

View Full Article - PDF
Download Full Article - PDF

Search for Articles

James Keeley on Google Scholar
James Keeley on Pubmed
Adam Kess on Google Scholar
Adam Kess on Pubmed

Statistics

Viewed 1014
Printed 289
Downloaded 738
Powered By iPortal Works