Dollarisation and macroeconomic performance: An empirical investigation from Vietnam
Thi Thu Hieu Nguyen
Mien Trung University of Civil Engineering, Vietnam
nguyenthithuhieu@muce.edu.vn
Do Thi Thanh Nhan
Ton Duc Thang University, Vietnam
dothithanhnhan@tdtu.edu.vn
Le Kieu Oanh Dao
Banking University of Ho Chi Minh City, Vietnam
oanhdlk@buh.edu.vn
Quynh Nga Duong
Ho Chi Minh City Open University, Vietnam
nga.dq@ou.edu.vn
Abstract
The paper examines the relationship between dollarisation and economic performance, particularly focusing on the effects of dollarisation on macro variables for Vietnamese economy. Using the Vector Error Correlation Model (VECM) model, the paper exhibits two key relationships: (1) the relation between the dollarisation of deposits and the monetary variables under the impact of ceiling policy of deposit interest rates, (2) the relation between the dollarisation of loans and economic growth and exports. The paper concludes by offering some recommendations for the control dollarisation in the economy.
Keywords: dollarisation; currency; international trade; macroeconomics