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Analysis of the dollarization process in Ecuador
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105 b
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Dollarizing an economy is very complex since it affects macroeconomic, microeconomic, governmental, competitive and commercial aspects of the country. Therefore, the purpose of this research is to analyze the dollarization process in Ecuador and its impact on competitiveness and bilateral trade relations with Colombia, specifically in the border area, for the period 1990 - 2012. To achieve this, the Ecuadorian dollarization process, the trade situation of Colombia and Ecuador, and the impact of the regime on the competitiveness of both countries were analyzed using the Balassa-Samuelson model; finally, the results suggest that the dollarization of Ecuador in the year 2000 positively affected the country since it mitigated the discontent of the population and boosted economic and financial activity and investments in Ecuador.
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