Cambodia's Persistent Dollarization: Causes and Policy Options
Menon, Jayant | September 2008
Abstract
Cambodia’s economic and social achievements over the past ten years have been the most
impressive in its history. Nevertheless, Cambodia today is still as dollarized, if not more so,
than it was ten years ago. What is this so, and what, if anything, should the Government do?
This paper attempts to answer both these questions, by examining the reasons behind the
apparent paradox between a decade of economic and political improvements and continued
dollarization, and drawing policy implications from it. We advise against pursuing enforced dedollarization,
and advocate a policy option that focuses instead on accelerating accommodative
reforms, especially in the financial sector and on legal and institutional reforms. We also identify
a host of institutional barriers that need to be overcome to prepare the groundwork for a natural
process of de-dollarization.
Citation
Menon, Jayant. 2008. Cambodia's Persistent Dollarization: Causes and Policy Options. © Asian Development Bank. http://hdl.handle.net/11540/1779. License: CC BY 3.0 IGO.Keywords
Macroeconomic
Macroeconomic Analysis
Macroeconomic Framework
Macroeconomic Models
Macroeconomic Performance
Macroeconomic Planning
Macroeconomic Policies
Macroeconomic Reform
Macroeconomic Stabilization
Social condition
Economic dependence
Economic assistance
International monetary relations
International monetary relations
International trade
National accounting
Market
Exchange
Comparative economics
Index number
Monetary policy
Value analysis
Adjustment cost
Transaction cost
Conditionality
International relations
Show allCollapse
Citable URI
http://hdl.handle.net/11540/1779Metadata
Show full item recordUsers also downloaded
-
The Service Sector in Lower-Income Asian Economies
Estrada, Gemma; Acharya, Yubraj; Batten, Aaron; Brimble, Peter; Doung, Poullang; Iskandar Gulamov, Mirzo; Hossain, Mohammad Zahid; Mellor, Dominic; Park, Donghyun; Rahman, Shamsur (Asian Development Bank, 2013-04-01)In the past 10 years, the service sector has been a significant contributor to overall economic growth in Bangladesh, Cambodia, Nepal, Papua New Guinea, Uzbekistan, and Viet Nam. Sector growth has been supported by strong industrial growth in some while in others the critical factors have been liberalization, structural reforms, government support, and foreign investments. In order to increase ...In the past 10 years, the service sector has been a significant contributor to overall economic growth in Bangladesh, Cambodia, Nepal, Papua New Guinea, Uzbekistan, and Viet Nam. Sector growth has been supported by strong industrial growth in some ... -
Narrowing the Development Divide in ASEAN: The Role of Policy
Menon, Jayant (Asian Development Bank, 2012-07-01)"The Association of Southeast Asian Nations (ASEAN) is highly diverse. It is also divided. The most striking example is the development divide that separates ASEAN’s newer members of Cambodia, the Lao People’s Democratic Republic, Myanmar, and Viet Nam—the CLMV countries—from the organization’s original members, or ASEAN-6. More rapid growth in Cambodia, Lao People’s Democratic Republic, and ..."The Association of Southeast Asian Nations (ASEAN) is highly diverse. It is also divided. The most striking example is the development divide that separates ASEAN’s newer members of Cambodia, the Lao People’s Democratic Republic, Myanmar, and Viet ...