01789cas a2200241 a 4500 AALejournalIMF015798 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513508979 1018-5941 BD-DhAAL BD-DhAAL Kim, Minsuk. Financial Development, Exchange Rate Fluctuations and Debt Dollarization : A Firm-Level Evidence / Minsuk Kim. Washington, D.C. : International Monetary Fund, 2019. 1 online resource (42 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper examines how financial development influences the debt dollarization of nonfinancial firms in a sample of emerging market economies (EMEs). The macroeconomic channels are identified from an optimal portfolio allocation model and assessed empirically using the accounting information of nonfinancial firms from 21 EMEs during 2009-2017. The results show that financial development, measured by the private credit-to-GDP ratio, mainly reduces the influence of exchange rate volatility in determining a firm's debt currency composition, among other channels. Furthermore, the effect of exchange rate volatility becomes statistically insignificant beyond an estimated threshold credit-to-GDP ratio of 100 percent. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2019/168 Full text available on IMF http://elibrary.imf.org/view/journals/001/2019/168/001.2019.issue-168-en.xml IMF e-Library