Manufacturing and economic growth in Ecuador from a regional perspective. A dynamic panel model, 2007 -2020

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Published: Mar 19, 2022
DOI: https://doi.org/10.54753/rve.v10i1.1290

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Diego Ochoa-Jiménez
Departamento de Economía, Universidad Técnica Particular de Loja, Loja, Ecuador
Reinaldo Armas-Herrera
Departamento de Ciencias Empresariales, Universidad Técnica Particular de Loja, Loja, Ecuador
Christian Pereira
Carrera de Economía, Universidad Técnica Particular de Loja, Loja, Ecuador

Abstract

The objective of this article is to investigate at the regional level the situation of the manufacturing sector in the Ecuadorian economy and its influence on economic growth for the period 2007-2020, using Kaldor's laws of economic growth as a theoretical basis. In Ecuador, the manufacturing sector does not present a significant development, it represents 20.8% of the national gross added value, with an average growth rate of 1.5% per year during the study period, below the primary and service sectors, with 3 % and 2.7% respectively. On the other hand, when carrying out the analysis using a static and dynamic panel econometric model at the provincial level, the results of the empirical exercises suggest that the Ecuadorian industry is positively correlated with the level of labor productivity and with the growth of the remaining sectors. of the economy. Likewise, the results for Kaldor's Second Law show the existence of increasing returns to scale, at least when information is used at the regional level for the study period. Finally, this study recommends public policies aimed at promoting the development of the manufacturing sector with the aim of promoting sustainable economic development in Ecuador.

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How to Cite
Ochoa-Jiménez, D., Armas-Herrera, R., & Pereira, C. (2022). Manufacturing and economic growth in Ecuador from a regional perspective. A dynamic panel model, 2007 -2020. Revista Económica, 10(1), 31–44. https://doi.org/10.54753/rve.v10i1.1290
Issue
Vol. 10 No. 1 (2022): RVE Vol 10 (January - June 2022)
Section
RESEARCH ARTICLES
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