Dollarization and Enterprise's Behaviors: The Case of Cambodia

We investigated the Cambodian enterprises behaviors and its relation with dollarization using survey data. The data was collected in the survey carried out in 2014. We found that, in the case of Cambodia, that not only loans, but revenues, expenditures and price quotations are also highly dollarized. In addition, we found that the extents of dollarization vary across regions, firm size and industries. Furthermore, there was a currency mismatch between the currency compositions of revenues and expenditures. Especially, the mismatch is prominent in firms operating central area, firms of small sizes, or firms classified into the wholesale and retail trade sector. Importantly, we found that most of firms do not recognize the risk of exchange rate changes and do not have hedging strategies, although they cope with more than two currencies in their daily operation.

Graduate School of Economics, Hitotsubashi University

2016-10

English(eng)

technical report

VoR

23

Discussion papers / Graduate School of Economics, Hitotsubashi University

https://hdl.handle.net/10086/28156