Oil refining in Ecuador and its impact on economic growth: a time series study, 2000-2017 period

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Published: Jul 15, 2020
Keywords:
Exhaustible resources, Economic growth, South America

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Richard Gómez
Universidad Nacional de Loja
Manuel Pambi
Universidad Nacional de Loja

Abstract

This paper evaluates the effect that oil refining has on Ecuador’s economic growth during quarterly periods from 2000 to 2017. For its development, data from the Central Bank are analyzed, where the dependent variable is GDP and the independent variableis oil refining. . Using the time series data methodology, the results obtained after the proper handling of the data that relate to the positive relationship but very close to zero. The results are consistent with the theoretical framework, since Ecuador is a country that exports raw materials, oil refining should be a proposal in the future given the low oil prices expected for the coming years. Although the effect is negative in the short termdue to the high investment cost necessary in the refining of oil, in the long termit can benefit the country by decreasing the importation of derivatives, preventing the income derived fromexports fromreturning.

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How to Cite
Gómez, R., & Pambi, M. (2020). Oil refining in Ecuador and its impact on economic growth: a time series study, 2000-2017 period. Revista Económica, 5(1), 47–55. Retrieved from https://revistas.unl.edu.ec/index.php/economica/article/view/771
Issue
Vol. 5 No. 1 (2018): Revista Económica vol 5 (Julio-Diciembre 2018)
Section
RESEARCH ARTICLES
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