Regresar

Contribution of the stock market to the growth and modernization of the ecuadorian economy

Abstract:

The objective of this paper is to determine the main contributions that the stock market has generated to the growth and modernization of the Ecuadorian economy. To achieve this, a correlation between the international oil price and the stock market variables in Ecuador (fixed income, equities and ECUINDEX) is made. Considering as source of information the news bulletins of the International Monetary Fund and the monthly reports of the stock exchanges of Ecuador respectively. In addition, a historical descriptive study of the evolution of the amounts negotiated at the national level in the stock market and the measures applied by the Government to streamline its operation is carried out. Among the main results obtained are: that the Ecuindex has maintained a volatile behavior in the last ten years, in which factors influence internal and external to the Ecuadorian economy especially the variation of the oil prices in the international market. Due to the above it can be indicated that, in times of oil crises, the public sector has a greater participation in the issuance of securities that are traded in the stock market. Another evidence that is highlighted is that, within the stock market, fixed income transactions are the ones with the largest share.