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Local economic development in Ecuador: Relationship between gross domestic product and economic sectors

Abstract:

Local economic development is a systematic process that involves various sectors, such as: Public, private, associations, among others; whose purpose lies in increasing, at the same time, the quality and standard of living of the inhabitants. In Ecuador, this process has a long way to go, due to the presence of socioeconomic indicators in negative figures in various cantons of the national territory. Indeed, this research aims to describe the main social and economic variables of the cantons Daule, Nobol and Santa Lucía, which are circumscribed in the process of local economic development. The methodology applied was under a non-experimental design of descriptive and exploratory type. A panel data model was developed in order to assess the sensitivity of the economic sectors, considering the unobservable effects, on the growth of the Gross Domestic Product of these cantons. As a result, socioeconomic indicators reflect the poor economic development that the district possesses, concluding that it is necessary to design and implement effective and participatory public policies to reverse this situation; In addition, the model shows a greater sensitivity of the Gross Domestic Product towards wholesale and retail trade.