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

Article Sidebar

PDF (Español (España)) HTML (Español (España))
Published: mar. 19, 2022
DOI: https://doi.org/10.54753/rve.v10i1.1290

Main Article Content

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.

Metrics

Metrics Loading ...

Article Details

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
Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Esta obra está sujeta a la licencia Reconocimiento-NoComercial-SinObraDerivada 4.0 Internacional de Creative
Commons. Para ver una copia de esta licencia, visite http://creativecommons.org/licenses/by-nc-nd/4.0/.

References

Agurto, A. (2018). Relación entre crecimiento económico y manufactura en Ecuador usando técnicas de cointegración. Revista Vista Económica, 70-82.

Alastre, M. (2013). Profundización Financiera del sector manufactura en Venezuela y su relación con el crecimiento económico. Observatorio de la Economía Latinoaméricana.

Alvarado, R., & Iglesias, S. (2017). Sector externo, restricciones y crecimiento económico en Ecuador. Problemas del desarrollo, 48(191), 83-106.

Bairam, E. (1975). The Verdoorn law, returns to scale and industrial growth rate differences on kaldorian lines. Oxford Economics Papers(27), 201-214.

Banco Central del Ecuador. (2022), “Cuentas nacionales regionales”, 10 febrero de 2022 (https://contenido.bce.fin.ec/documentos/Estadisticas/SectorReal/CuentasProvinciales/Indice.htm)

Banco Mundial. (2021). World Development Indicators 2021. Washington, US: World Bank.

Carton, C. (2009). Mecanismos kaldorianos del crecimiento regional: Aplicación empírica al caso del ALADI (1980-2007). Economic Analysis Working Papers, 8(5).

Castilla, C. (2009). Cambios estructurales en la dinámica productiva de Antioquia 1980 - 2005. Ecos, 112-166.

Clark, J. (1940). Toward a Concept of Workable Competition. The American Economic Review, 30(2), 241-256.

Coronado , C., & Barrón , K. (2011). La productividad del empleo en la economía nayarita 1988-2008, desde la perspectiva Kaldoriana. Fuente, 165 - 181.

Dasgupta, S., & Singh, A. (2006). "Manufacturing, Services and Premature De-Industrialisation in Developing Countries". Centre for Business Research, University Of Cambrigde, Working paper 32.

Dong, G. (2007). The leading role of manufacture in regional economic in China: A spatial econometric view of Kaldor´s Law. Workshop on Agglomeration and Growth in Knowledge-Based Societies Kiel, Alemania. , 1 - 22.

Guo, D., Dall’erba, S., & Gallo, J. L. (2013). The leading role of manufacturing in China’s regional economic growth: A spatial econometric approach of Kaldor’s laws. International Regional Science Review, 36(2), 139-166.

Feder, G. (1983). On exports and economic growth. Journal of Development Economics, 12(1), 59-73.

Felipe, J. (1998). The Role of Manufacturing Sector in Southeast Asian Development: a Test of Kaldor’s First Law. Journal of Post Keynesian Economics, 20(3), 463-485.

Fernández, R., & Palazuelos, E. (2018). Measuring the role of manufacturing in the productivity growth of the European economies (1993–2007). Structural Change and Economic Dynamics, 46, 1-12.

Fisher, A. (1939). Production, Primary, Secondary and Tertiary. Economic Record, 15, 24-38.

Gil, A., & Martínez, H. (2009). Análisis kaldoriano de la industria manufacturera risaraldense, 1980-2007. Gestión y Región(8), 65-91.

Hirschman, A. (1958). The Strategy of Economic Development. The Canadian Journal of Economics and Political Science, 27(1), 110-112.

Haraguchi, N., Cheng, C. F. C., & Smeets, E. (2017). The importance of manufacturing in economic development: has this changed?. World Development, 93, 293-315.

Kaldor, N. (1966). Causes of the Slow Rate of Economic Growth of the United Kingdom: An Inaugural Lecture. Cambrigde University Press.

Kaldor, N. (1972). The Irrelevance of Equilibrium Economics. The Economic Journal, 82(328), 1237-1255.

Kaldor, N. (1975). What is Wrong With Economic Theory. The Quarterly Journal of Economics, 89(3), 347-357.

Kalecki, M. (1963). An outline of a method of construction of a perspective plan. Essays on Planning and Economic Development, 1, 9-22.

León-Ledezma, M. (1999). Economic Growth and Verdoorn’s Law in the Spanish Regions, 1962-1991. International Review of Applied Economics, 14(1), 55-69.

Loria, E. (2009). Sobre el lento crecimiento económico de México. Una explicación estructural. Invsetigación Económica, 68(270), 37-68.

Mahia, R. (2000). Introducción a la especificación y estimación de modelos con datos de panel. Universidad Autonoma de Madrid.

Marconi, N., de Borja Reis, C. F., & de Araújo, E. C. (2016). Manufacturing and economic development: The actuality of Kaldor's first and second laws. Structural Change and Economic Dynamics, 37, 75-89.

McCombie, J. (1981). What Still Remains of Kaldor’s laws. Economic Journal, 91(361), 206-216.

McCombie, J. (1983). Kaldor’s Laws in Retrospect. Journal of Post Keynesian Economics, 5(3), 414-429.

McCombie, J. (1988). A Synoptic View of Regional Growth and Unemployment, The Post Keynesian Theory. Urban Studies, 25, 399-417.

McCombie, J., & Thirlwall, A. (1994). Economic Growth and the Balance-of-Payments Constraint. The Economic Journal, 104(427), 1468-1470.

Moreno, Á. (2008). Las leyes del desarrollo económico endógeno de Kaldor: el caso colombiano. Revista de economía institucional, 10(18).

Myrdal, G. (1957). Economic Theory and Under Developed Regions.

Nurske, R. (1953). Problems of Capital Formation in Underdeveloped Countries. Oxford, Blackwell.

Ocegueda, J. (2003). Análisis kaldoriano del crecimiento económico de los estados de México, 1980-2000. Comercio Exterior, 53(11), 1024-1034.

Ochoa - Jiménez, D. O., Ordóñez, J., & Peña, A. (2011). Crecimiento económico y restricción externa del Ecuador 1970-2008. Eseconomia. Revista de estudios economicos, technologicos y sociales del mundo contemporaneo, 6(31), 3-31.

Osorio, N. (2011). Análisis de mercado del sector industrias manufactureras en base a CIIU 3 bajo un enfoque de concentración económica en el periodo 2000-2008 en el Ecuador. Escuela Politécnica Nacional, Quito.

Prebisch, R. (1959). Commercial policy in the underdeveloped countries. American Economic Review, 49(2).

Quintana, L., Rosales, R., & Mun, N. (2013). Crecimiento y desarrollo regional de México y Corea del Sur: un análisis comparativo de las leyes de Kaldor. Investigación económica, 72(284).

Rosenstein-Rodan, P. (1943). Problems of Industrialization of Eastern and South-eastern Europe. The Economic Journal, 53(210), 202-211.

Rostow, W. (1960). The stages of growth: A non-communist manifesto. . Cambridge University Press, 4-16.

Rowthorn, R. (1975). “What Remains of Kaldor Law? Economic Journal, 85(337), 10-19.

Sallam, M. A. (2021). The role of the manufacturing sector in promoting economic growth in the Saudi economy: a cointegration and VECM approach. The Journal of Asian Finance, Economics and Business, 8(7), 21-30.

Sánchez, I. (2011). Estancamiento económico en México, manufacturas y rendimientos crecientes: un enfoue kaldoriano. Investigación Económica, 70(277).

Sánchez, I. (2012). Ralentización del crecimiento y manufacturas en México. Nóesis, 21(41).

Smith, A. (1776). Investigación sobre la naturaleza y causa de la riqueza de las naciones. 527 540.

Szirmai, A., & Verspagen, B. (2015). Manufacturing and economic growth in developing countries, 1950–2005. Structural change and economic dynamics, 34, 46-59.

Thirlwall, A. (2015). Essays on Keynesian and Kaldorian economics. Springer.

Vera, L. (2011). Paradojas de la desindustrializació ¿Hay evidencia de la tercera ley de Kaldor para Venezuela? Nueva Economía, 33.

Verdoorn, P. (1949). Los factores que regulan el desarrollo de la productividad del trabajo. L´industria(1), 3-10.

Wells, H., & Thirlwall, A. P. (2015). Testing Kaldor's growth laws across the countries of Africa. In Essays on Keynesian and Kaldorian Economics (pp. 339-351). Palgrave Macmillan, London.

Young, A. (1928). Increasing returns and economic progress. The Economic Journal, 38(152).

Zapata Chin, K. P., Nieves, W. J. N., & Granda, A. D. C. V. (2022). Manufactura y Crecimiento Económico en Ecuador, 1990-2019: Validez de la primera ley de Kaldor. Revista Metropolitana de Ciencias Aplicadas, 5(1), 169-178.