ABSRJ 2021 Volume 12, Number 2

Dollarisation and macroeconomic performance: An empirical investigation from Vietnam

Thi Thu Hieu Nguyen
Mien Trung University of Civil Engineering, Vietnam

Do Thi Thanh Nhan
Ton Duc Thang University, Vietnam

Le Kieu Oanh Dao
Banking University of Ho Chi Minh City, Vietnam

Quynh Nga Duong
Ho Chi Minh City Open University, Vietnam


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

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