Spending government, investment and output in the Ecuadorian economy: evidence based on time series data

Abstract:

The purpose of this research is to determine the relationship between public spending, investment and the development of real output for Ecuador's economy in the period 1965-2016. The research is explanatory, and the data used comes from secondary sources. Models were estimated using the finite distributed lag methodology and the Engle-Granger co-integration approach. The results suggest a positive and significant effect of public expenditure on output and private investment, in a demand equation, as well as a co-integration relationship; however, the weight of public expenditure on output and public investment have a negative effect on private investment.

Año de publicación:

2018

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Fuente:

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