Dollarization and its relationship with economic insecurity in Ecuador (2014-2023)
DOI:
https://doi.org/10.25097/rep.n43.2026.03Keywords:
economic growth, economic inequality, dollarization, foreign investment, economic securityAbstract
This study examines the relationship between dollarization and economic stability in Ecuador during the period 2014-2023. Economic stability is represented by indicators such as gross domestic product (GDP), per capita income, inflation rate, and foreign direct investment (FDI). Using a quantitative approach, the findings showed that dollarization is associated with controlled inflation, which in turn has attracted FDI. Both GDP and per capita income showed an increase, but the economic inequality gap remained. A correlation was found between FDI and inequality (r=0.012; p=0.973), but the correlation between per capita income and inequality (r=-0.561; p=0.091), it was not significant. Compared to Colombia, it was noted that, although both countries experienced growth, the Colombian economy showed greater instability in terms of inflation, suggesting that dollarization in Ecuador is associated with greater price stability.
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