Front Matter Page
Western Hemisphere Department
Contents
I. Introduction
II. Theoretical Literature Review
III. Data Set and Basic Stylized Facts
A. The Firm-Level Dataset
B. Exchange Rate Regimes
C. A First Glance at the Data
IV. Baseline Results
A. Dollarization Levels in Flexible versus Pegged Regimes
B. Currency Matching in Flexible versus Pegged Regimes
V. Robustness Tests
A. Firms with No Foreign Currency Debt
B. Sample Selection Bias
C. Importance of Interest Rate Differentials and Exchange Rate Appreciation
D. Additional Statistical Checks
VI. Alternative Explanations
A. Changes in Regulations to Banks’ Foreign Currency Lending
B. Differential Access to Credit and Ability to Expand Production During Crisis
VII. A Closer Look at the Data: Exploiting Changes in Entire Distribution of Firms’ Dollar Debt Ratios
A. Conditional Quantile Estimates: Basic Framework
B. Results
VIII. Conclusions
References
Tables
1. Number of Observations Used in Empirical Analyses
2. Descriptive Statutes for Full Sample
3. Exchange Rate Regimes and Measures of Exchange Rate Flexibility Within Regimes
4. The Effects of Exchange Rate Regimes on Firm-Level Dollarization
5. The Effects of Exchange Rate Regimes on Balance Sheet Currency Mismatches
6. The Effects of Exchange Rate Regimes on Currency Mismatches Robutness Tests
7. The Effects of Exchange Rate Regimes on Currency Mismatches: Alternative Explanations
Figures
1. Cross Sectional Distribution of Dollar Debt Ratios Within Countries
2. Dollarization of Liabilities of the Corporate Sector in Latin America
3. Dollar Debt as a Share of National Currency Hedges
4. Chile: Strong Accumulation of Net Dollar Assets Since Onset of Flexible Regime in 1999
5. Effect of Switch to Flexible Regimes of Different Points of the Cross-Sectional Distribution of Dollar Debt Ratios
Appendices
I. Data Construction
II. Results Based on Event Study Techniques
III. Censored Quantile Regression