Intersectoral Dynamics and Economic Growth in Ecuador
The authors analyze sectoral growth in Ecuador, using multivariate co-integration analysis. They find significant long-run relationships between the agricultural, industrial, and service sectors. Moreover, they are able to derive dynamic sector mod...
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| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2001/01/888040/intersectoral-dynamics-economic-growth-ecuador http://hdl.handle.net/10986/19715 |
| Summary: | The authors analyze sectoral growth in
Ecuador, using multivariate co-integration analysis. They
find significant long-run relationships between the
agricultural, industrial, and service sectors. Moreover,
they are able to derive dynamic sector models that combine
the short-run links between the three sectors with long-run
dynamics. When disaggregate the three sectors into their
intra-sectoral components, they discover many interesting
relationships that contribute to a better understanding of
inter- and intra-sectoral dynamics in the context of
Ecuadorian economic growth. Their findings suggest that more
attention should be paid to inter-dependencies in sectoral
growth, since an improved understanding of inter-sectoral
dynamics may facilitate the implementation of policy aimed
at increasing economic growth in Ecuador. There appears to
be no direct link between the oil sector, and the non-oil
industrial sectors. But strong evidence supports
co-integration between the oil industry, and financial
services, as well as between the oil industry, and public
services. This means, among other things, that the oil
industry is likely to affect other sectors through the
financial sector, the public sector, or both. |
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