Dollarization in Cambodia: Behavior of Households and Enterprises in a Highly Dollarized Environment

Abstract

This book sheds light on the dollarization trends of four transitional economies in Southeast Asia: Cambodia, Lao PDR, Myanmar, and Vietnam. Moving beyond the tendency to focus on the Latin American experience of dollarization and prolonged high inflation, the chapters in this book compare how payment dollarization has been more persistent than other types of dollarization in this region due to network externalities. The book illustrates that dollarization started in the underdeveloped financial system in these countries and that dollarization interacted with financial development, which is in contrast to dollarization in Latin America. This project extends the frontiers of empirical studies on dollarization. It will be of interest to students, researchers and policy makers concerned with dollarization and economics in Southeast Asia. Chapter 1. Introduction: Dollarization and de-dollarization in transitional economies of Southeast Asia: An overview -- Chapter 2. Dollarization in Cambodia: Behavior of households and enterprises in a highly dollarized environment -- Chapter 3. Asset substitution and currency substitution behind dollarization in the Lao PDR: Recent evidence from bank-level data of foreign currency deposits -- Chapter 4. Dollarization in Myanmar? -- Chapter 5. Dollarization and de-dollarization policies: the case of Vietnam -- Chapter 6. Economic Growth, monetary policy, and dollarization in the CLMV countries -- Chapter 7. Banking and dollarization: A comparative study of Cambodia, Lao PDR, and Vietnam.