Effect of public spending on the level of imports in Ecuador, 2000-2020

Authors

DOI:

https://doi.org/10.17981/econcuc.43.2.2022.Econ.2

Keywords:

Aggregate demand, Dollarization, Offer added, Public spending, Non-financial public sector, Imports, Elasticity

Abstract

In the last decade, increasing in public spending in the Ecuadorian economy was notorious, causing different effects on all components of the aggregate supply. This research work aims to measure the effect of public spending in the non-financial sector on the behavior of total imports, taking data from the Central Bank of Ecuador in the period between the third quarter of 2000 and the second quarter of 2020. This analysis was performed using a classical linear regression model based on Ordinary Least Squares (OLS). It was determined that public spending explains the level of imports at 42.92% and in turn, imports show inelastic reactions to public spending.

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Author Biographies

Carlos Joaquín Crespo Cordero, Universidad del Azuay

He is an Economist graduated from the Universidad del Azuay. Currently dedicated to private professional practice

Luis Bernardo Tonon Ordóñez, Universidad del Azuay

He is an Economist graduated from the Universidad del Azuay. He has the following postgraduate degrees obtained at the Universidad del Azuay: Higher Diploma in Finance, Stock Market and Fiduciary Business. Higher Diploma in International Negotiation. Masters of Business Administration. Since 2003 he has been a professor at the Universidad del Azuay in the areas of Economics and Finance. He is currently Coordinator of the School of Economics. He has participated in various research groups and is part of the Business Observatory of the Universidad del Azuay

Luis Gabriel Pinos Luzuriaga, Universidad del Azuay

He is an Economist graduated from the Universidad del Azuay, he obtained his Master's Degree in Insurance and Financial Risks from the Escuela Superior Politécnica de Litoral (ESPOL). He works as a teacher in the area of ​​statistics, actuarial calculation, and econometrics. He has participated in different research projects, and is currently linked to the research group of the Business Observatory of the Universidad del Azuay

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Published

2022-04-04

How to Cite

Crespo Cordero, C. J., Tonon Ordóñez, L. B., & Pinos Luzuriaga, L. G. (2022). Effect of public spending on the level of imports in Ecuador, 2000-2020. ECONÓMICAS CUC, 43(2), 157–176. https://doi.org/10.17981/econcuc.43.2.2022.Econ.2

Issue

Vol. 43 No. 2 (2022): July - December, 2022

Section

Articles: Economy and Finance

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Copyright (c) 2022 Carlos Joaquín Crespo Cordero, Econ., Luis Bernardo Tonon Ordóñez, Luis Gabriel Pinos Luzuriaga, Econ.

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