Restrictions on productivity growth in Ecuador: External and fiscal gap (2002-2017)

Abstract

The following paper attempts to show the fundamental balances of an economy, it is found that, in Ecuador the dominant are the external and fiscal balances. So, external balance vulnerability in the face of exogenous shocks, ends affecting the fiscal balance and productive activity in a whole, given that Ecuador is presented as a 'State led economy’. The common solution has been the increment of public debt that channel the fiscal gap and generate adjustment with growth. Nevertheless, public investment does not oscillate positively as the debt stock increment does, this weakens the economy's productivity and consequently aggravates the debt sustainability.

URL: http://revistas.uta.edu.ec/erevista/index.php/bcoyu/article/view/672