||Dollarization and Enterprise's Behaviors: The Case of Cambodia
AIBA, DaijuTHA, Ranareth
80 , 2017-01-31 , 一橋大学大学院経済学研究科
Cambodia has long suffered from the heavy dollarization in its economy and financial system, after it started to transit market-oriented economy in 1990s. However, there is a paucity of empirical investigation into Cambodian dollarization at micro level. In this study, we investigated the Cambodian enterprises behaviors and its relation with dollarization using survey data. The data was collected from 856 enterprises in the survey carried out in 2014. We found that, in the case of Cambodia, not only loans, but revenues, expenditures and price quotations were also highly dollarized. In addition, we found that the extents of dollarization varied across regions, firm sizes and industries. Furthermore, there was a currency mismatch between the currency compositions of revenues and expenditures. Especially, the mismatch was prominent in firms operating in the central area, firms of small sizes, or firms classified into the wholesale and retail trade sector. Importantly, we found that most of firms did not recognize the risk of exchange rate changes and did not have hedging strategies, although they handled more than two currencies in their daily operation.