The Costs and Benefits That Developing Countries Could Draw From Dollarization: The Zimbabwean Experience Period 2009-2018

Abstract

The paper presents and examines the impact of dollarization on growth and development of emerging economies with specific reference to Zimbabwe's experience in the period, 2009-2018. The research study explores the theoretical and empirical evidence drawn from countries of the world that dollarized for various economic reasons.The study used a descriptive survey design to analyse the research data drawn from the field on the impact of dollarization on economic growth and development prospects of dollarized emerging economies. It was found out that dollarization was essential in reducing high inflation and unemployment rates to acceptable levels, increased aggregate supply and demand, the gross domestic product (GDP), and living standards of the citizens of developing nations. The study concluded that dollarization contributed significantly to the growth and development of most emerging economies of the world. It was therefore recommended that emerging economies such as Zimbabwe should rationally and effectively dollarize in their desire to attain all the millennium development goals (MDGs), and drive towards elimination of dependence on rich nations, self-reliance, and sustainable development.