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Ecuador is a developing country characterised by a high degree of informality and has undergonesignificant economic transformations that have had an impact on the labour market. Despite thenational trend of a slight decline in labour force participation, there are notable differences indevelopment across the country, making it an interesting case study. This article examines thedeterminants of regional differences in labour force participation and the sectoral structure ofemployment. Using a regional panel data analysis, it identifies the cyclicality of labour forceparticipation, formal and informal wage employment and self-employment for both sexes. Theresults of the decomposition highlight the significant influence of education, household conditions,age distribution and regional factors on regional labour force participation and employmentcomposition. The results show that labour force participation has undergone significant changesover time and exhibits strong counter-cyclical behaviour. The analysis shows that formalemployment is procyclical, while informal wage employment shows countercyclical fluctuations.Moreover, self-employment does not seem to be affected by the business cycle, except in recentyears. Finally, it is concluded that women's participation in the labour force is more related topolicies affecting the educational level of the population than to business cycle factors.

This study analyzes the impact of the COVID-19 pandemic and the economic reactivation carried out in Ecuador in 2021 on the corporate performance of Ecuadorian companies; in this country, most of the business fabric is made up of micro and small companies, which is why it could provide new insights to the literature. The empirical analysis is based on the DID impact evaluation methodology from a company database obtained from the financial statements of the Superintendency of Companies of Ecuador. The results reveal that there is great heterogeneity in the corporate impact of the pandemic and that the affected ones were mainly micro and small companies; additionally, they indicate that the negative effects of the pandemic on financial performance extended into 2021, thus signaling a weak economic recovery. These results are key for designing policies aimed at economic reactivation in the business segments and industries most impacted by the pandemic

Capital structure is a topic highly analyzed by various authors throughout history. However, no absolute value has been defined for the level of indebtedness that a company should have, both internal and external, since it varies according to the nature of the business. The present research seeks to analyze the degree of influence of the determinants of the capital structure on the indebtedness ratio (Total Liabilities/Total Assets) of Ecuadorian companies in the period 2015- 2019; by means of fixed and random effects panel data estimations. The results allow pointing out that the variables firm size, return on equity, taxes and current liquidity are significant for the indebtedness index. Additionally, it was concluded that companies belonging to the service sector will see a greater increase in their indebtedness index compared to the Ecuadorian manufacturing sector. The findings can be used as a reference by the managers of Ecuadorian companies in order to improve their financing policy and establish an optimal capital structure, which will contribute to obtain better returns and increase their market value.

This study examines stylised facts related to the business cycle in Ecuador for the period of 1990–2019. To reflect on the dollarisation process that the country went through by the end of 1999, the analysis is conducted for two sub-periods: 1990–1999 and 2000–2019. The paper investigates a wide range of macroeconomic variables for Ecuador, including variables regarding demand, the labour market, nominal variables, and variables related to an open economy. The sensitivity of correlations is studied through two detrending techniques: 1) the modified Hodrick-Prescott (MHP) filter; 2) a Hodrick-Prescott filter with a smoothing parameter of 1,600. The results reveal substantial changes in the cyclical behaviour of the Ecuadorian economy under dollarisation. In particular, the country shows greater dependence on the international market and high vulnerability to demand shocks.

Taxes constitute one of the most important means for collecting economic resources of governments, through which they base their efforts in areas such as education, health, and roads, among others. The importance of these resources has made governments work on alternatives to reduce the high level of evasion and avoidance in recent years. In this sense, Latin America is a region that bases its resources on two taxes, the Income Tax (IR) and the Value Added Tax (VAT). Unfortunately, in this region, growing levels of tax avoidance are evident, which generates concern in national governments and proposes alternatives to eradicate them. For this reason, this article presents a Systematic Review of the Literature (SLR) based on 40 papers in order to identify the factors that trigger tax avoidance in Latin America. The review results, presented through bubble charts, provide the scientific community with systematized information on the critical points in the avoidance of taxes such as IR and VAT in Latin America. Through this information, lines of action can be established both for future research and for government entities to direct action plans in search of reducing tax avoidance, creating a tax culture in citizens that allows giving value to the correct declaration of taxes

En el mundo, cerca de 2.000 millones de personas padecen inseguridad ali- mentaria moderada o grave por la falta de acceso regular a alimentos nutritivos y suficientes (FAO et al., 2019). El número de personas que padecen hambre ha aumentado a casi 821 millones (FAO, FIDA et al., 2018) y en América Latina y el Caribe a 39,3 millones, siendo las personas que viven en las zonas rurales las que tienen mayor riesgo de padecer inseguridad alimentaria (FAO, OPS et al., 2018), afectado el cumplimiento del objetivo hambre cero para 2030. En efecto, el 46% de las personas en el mundo padecen hambre (FAO et al., 2019).

Housing is a basic human need; however, in recent decades slums have become the face of urbanization in developing economies. Urbanization drives economic growth, playing an important role in providing adequate housing and reducing poverty. In this paper, we investigate the association between housing deprivation and the urban size at a regional level for South Asian countries in the year 2015. We use two main sources of data. The first is the Demographic and Health Surveys (DHS), which provide microdata that allows us to build housing deprivation indexes based on the material characteristics of households and housing assets. The second source is satellite imagery, used to define urban cores and measure the urban size of each region. Then, we use a two-step procedure to identify the relationship between the urban size and housing deprivation. Our results indicate that age and higher levels of education (of the head of household) are negatively associated with our housing deprivation indexes in South Asian households. Furthermore, a greater number of children in South Asian households is related to higher levels of housing deprivation. In the second step, we show that there is a significant negative association between material housing deprivation and the urban size at a regional level for our full sample and for the majority of countries taken individually. An important exception is India, where an inverted-U-shaped relationship between deprivation and urban size is found. This result is robust even when an IV approach is used.

This paper studies deprivation dynamics at the subnational level, introducing a Local Multidimensional Poverty Index (LMPI), and focusing on multidimensional poverty in Ecuador and Uruguay between the last two available censuses, 1990–2010 and 1996–2011, respectively. As a first step, we construct the LMPI at the municipal level using microdata from both counties. Subsequently, we explore spatial and temporal dynamics through a set of tools such as the salter graph, Moran’s I, Moran scatterplot, and spatial transition matrix. The results indicate that compared to Ecuador, Uruguay was initially in a better position in terms of the LMPI. However, Ecuador achieved a generalized reduction of the LMPI during the period of analysis, reaching levels close to that of Uruguay. Nevertheless, spatial persistence in the LMPI is observed. © 2022, Asociacion Espanola de Ciencia Regional. All rights reserved.

The study assesses the contribution of cohort, age and business cycle effects to the evolution of labor participation rate and sectoral employment in Ecuador from 2000 to 2019. Being characterized by a large amount of informality, as well as by significant economic and institutional changes, Ecuador could provide new insights to the literature. The empirical analysis reveals that both female and male labor participation rate decreases for the younger generations. The life cycle profiles for sectoral employment show that formal employment rate has an inverted U-shaped form. In contrast, younger workers are found to be more likely to participate in the informal salaried sector, while self-employment notably increases with age. A sustained growth in formal employment rate is observed for the new generations, while the opposite occurs for the informal salaried and self-employment. Finally, the results suggest that female labor participation is strongly countercyclical, which correspond to the added worker effect hypothesis.

This research seeks to analyze the effect of foreign direct investment (FDI) on corruption, in addition to understanding whether it is conditioned by the level of economic development of the countries. For this, panel data type information will be used for 19 Latin American economies during the period 2002-2016, on an annual basis. To carry out the estimations, the econometric technique of the Generalized Method of Moments (GMM) is used in order to mitigate the possible endogeneity problem. The results show a significant effect of FDI on corruption and that FDI does not generate a unique effect on corruption, but rather that it is conditioned to the level of economic development of each country. In less developed economies, FDI will cause corruption, while in developed economies the effect will be adverse.

Ecuador is a developing country with great economic heterogeneity at the regional level. The objective of the study is to analyze the importance of institutional quality as determinants of subnational per capita income in Ecuador. The positive effect of institutions on economic growth at the national level has been demonstrated. However, studies that analyze institutions as determinants of regional growth for developing countries are still scarce. The study uses the Latinobarómetro surveys for 2007-2018 to obtain information on the perception of institutional quality and follows the methodology of the World Governance Indicators of the World Bank to analyze three dimensions of governance: voice and accountability, effectiveness of the government and rule of law. The empirical analysis is done with a panel data regression model and counterfactual exercises. Thee results indicate that the improvement of institutional quality is associated with increases in the regional income level, after controlling for factors such as human capital, infrastructure and capital stock. However, the analysis reveals that institutions only explain a moderate part of the regional differences in per capita income. From a policy point of view, the analysis suggests the need to consider strengthening institutional quality as a strategy that can complement and enhance the effects of other instruments that seek to promote regional economic growth.

The ratio of building permits to population is a key indicator to evaluate land consumption. However, few researchers focus on land consumption and its environmental spillovers, for developing countries. The aim of our study, using a Bayesian comparison approach applied to a spatial panel, is to analyse the existence of an inverted U-shaped curve relationship between land consumption and economic development, namely the environmental Kuznets curve, with data that ranges from 2007 to 2015 for 221 cantons in Ecuador. The Bayesian comparison approach allows us to identify: i) the spatial weight matrix that best fits the data, and ii) the best spatial model according to the type of spatial spillovers (local or global). These are both of extreme interest because a knowledge of the extent to which the spatial spillovers spread over space, and their functional form, supports the planning of effective land use policies. The results do not support the inverted U-shaped hypothesis of the Kuznets curve. By contrast, the curvature is convex, which means higher levels of land consumption for higher levels of wealth. Spatial spillovers spread to a limited extent, highlighting an imitation game among agents, both institutions and private agents, in the neighbour locations. Policy implications go from the strengthening of the institutional framework and local tax management, to the urban regeneration to limit real estate speculation. All these interventions should be coordinated among neighbours to avoid freeriding behaviours.

This article shows that the threshold model appropriately analysed can explain the emigration process as a consequence of the network features, where the willingness to emigrate depends on the personal and household conditions borne by the emigrant. In such a case, the emigration process can be defined in terms of a Pólya schema, and the emigration rate converges almost surely to a random variable with a beta distribution, which fully characterizes the network (assimilation, integration, separation or marginalization). The model is applied to Ecuador, which has experienced an unprecedented wave of emigration since 1998. We show that, despite the massive exodus, the process does not constitute a diaspora, because Ecuadorians do not interact appropriately with natives.

This paper identifies the determinants of per capita gross value added (GVA) growth in Ecuador during the 2007–2015 period, using a spatial extension of the Mankiw, Romer and Weil (MRW) model. Because as a country Ecuador is characterized by deep territorial socioeconomic imbalances, estimates using classical techniques that measure average or “global” effects would not be as justifiable and would have limited political implications. Accordingly, this study uses a spatial filtering technique, which is a recent evolution of geographically weighted regression (GWR), to account for the spatial heterogeneity of the coefficients of a growth regression that explicitly considers both physical and human capital. The results show that Ecuadorian cantons have a wide range of convergence rates and that the effect of physical and human capital varies across space.

This research aims the analysis of the impact of bank credit on economic growth in Ecuador applying the Autorregresive Vector (VAR) technique using quarterly time series data from 1990 to 2017. The variable Gross Domestic Product (GDP) used as proxy for economic growth and bank credit as a variable of interest. It was tested the stationarity of the variables using the Augmented Dickey-Fuller (ADF) unit root test. All the variables were integrated of order one i.e., I(1). Likewise, this research investigated the existence of causality relationship between the main variables applying the Granger Test. An important finding is the existence of a causal and significant relationship that goes from bank credits and broad money (M2) to economic growth.

This document analyzes the spatial scope of multidimensional poverty in Ecuador. The objective is to determine the existence of a mutual spatial dependence between different geographic sectors of the country and their variation over time. The geographical unit of analysis is the canton (municipality), for each of which the Multidimensional Poverty Index (MPI) and the Multidimensional Poverty Rate (MPR) were calculated using data from the Population and Housing Census for the 1990s. 2001 and 2010. Among the main results reported, the spatial autocorrelation of the poverty indicators for the analyzed three years, is significant and positive in nature, which implies that poverty at the cantonal level is linked to the behavior of this phenomenon in its neighboring municipalities, showing a higher level of dependency in 2010. Likewise, it is possible to determine the probable conformation of poverty conglomerates. On the other hand, there is evidence of a reduction in poverty at national level throughout the analyzed periods. This decrease in poverty is due to factors such as the expansion of service coverage and improvements in educational attainment.

Ecuador is a developing country characterized by severe territorial disparities reflected in a heterogeneous economic and social geography that risk to undermine a future balanced development. The paper analyses for the first time the impact of main economic sectors on sub-national growth process in the context of the “Changing Productive Matrix” policy objective, which aims to achieve productive diversification based on adding value through de-concentration of production from the existing poles to the whole territory. The estimation is performed using new data provided by Central Bank of Ecuador for the period 2007-2014 through a panel econometric technique. The results prove that, despite the strategy aimed at changing the productive matrix pushed by the government, this process is far to be completed. In particular, the country is too much focused on low productive sectors which depress economic growth and the manufacture and financial services sectors are too much concentrated in few areas, preventing their possible positive effect into the whole economy.

This present research allow recognize the impact level of socioeconomic that had small agricultural producers, basically en economic activities such as livestock, riñon tomato culture and raising of minor animals, whos to be menber of COAC Jardín Azuayo they benefited of productive credits with technical support for free. The investigation area were the zone northeast of Azuay: Paute, Gualaceo, Sevilla de Oro and Sigsig, where the Intititution set up productive credits with and without support technical, being the simple size a total of 387 units of analysis. The research methodology to evaluate the impact of program, took homogeneous samples between the treatment group (beneficiaries of the program) and control group (non-beneficiaries of the program) basically aspects like: sociodemographic level, economic and riches level, the last measure for the familiar patrimony and the size of theirs Agricultural Production Units (UPAs). After the conclusion of the impact assessment, the results found that the credit given by the institution contributed positively to improving the earnings level in both estudy groups. However, as far as the impact itself is concerned thanks to the program the result was negative since the level of earnings in the treatment group grew at a lower rate of speed compared to the control group. It is concluded that at the earnings level, the productive credit program with technical support provided by the institution did not achieve the expected seccess, However, it is considered important the financial inclusion that this financial institution gave through Access to credit to small and médium producers dedicated to agricultura en the south of Ecuador.

This article analyses the temporary and permanent effects of remittances on subnational economic growth in Ecuador. We find that both effects are statistically significant. However, while the size of first is negligible, the magnitude of the permanent effect is inversely related to the stage of development.

The present research develops an analysis on the process of refunding Value Added Tax) to people with disabilities in the city of Azogues during the period 2015 - 2016, in order to measure its impact on consumption. For this purpose, a survey was carried out based on a proportional stratified sampling design. After the application of surveys and the legal and theoretical arguments it was found that the proportion of this tax return in relation to its collection is very small, and that a high percentage of people with disabilities due to lack of information do not request this benefit. Those who have done so redistributed it in consumption, whose priority was health, food, housing and education.

Referring to terms of taxation, Ecuador has suffered diverse changes, including a new amendment made to the law of inheritance, legacies and donations; which has established various social and political discrepancies regarding the tributes brought on by the mentioned tax; besides, it is a tax that is not widely accepted by the people, and this fact has been reflected in the collections and declarations made by taxpayers. That is why it is necessary to carry out the present graduation work whose general objective is to carry out an analysis and proposal of the calculation of the tax on inheritances, legacies and donations in Ecuador. In order to fulfill the stated objective, an analysis is carried out that deepens and establishes logical precepts that should be promoted in the country, with the main purpose of proposing alternatives that prevent the tax evasion. This work mainly consists in a theoretical framework, through a brief history and background, concepts of inheritance, legacies and donations, and then focuses on what the current Ecuadorian situation is. Subsequently a proposal has been made based on an analysis of the bill sent to the Assembly by the Executive, an analysis in other legislation or countries, etc. And lastly, provides certain recommendations that will help to establish measures that will help the country

This paper analyses the impact of insecurity and crime victimization on support and satisfaction with democracy, and trust in institutions. Using survey data from the Latin American Public Opinion Project (LAPOP) from Ecuador during the period 2004 – 2014 in a cross-sectional analysis with the application of logistic models. The results shows that perceptions of higher insecurity decrease support and satisfaction with democracy; and that satisfaction with democracy seems to be sensitive to the victimization of crime but has no effect on preference for democracy. We also found that perception of insecurity reduces trust in institutions. In the same way crime victimization reduces trust in the police, the main institution responsible for combating crime.

This study aims to estimate the magnitude and the factors affecting the inter-cantonal commuting in Ecuador, as well as their relationship with the Local Economic Development. The estimated number of people moving between different cantons for work (commuting) is obtained through the processing of information presented in the National Survey of Employment, Unemployment and Underemployment (ENEMDU), biannual to June 2015. Moreover, determination of the factors that influence commuting is done through a multilevel logit model that combines information both individually and cantonal. The results show that in Ecuador the commuting has more relevance than internal migration and it is influenced by both individual and contextual factors. Individual determinants that influence the decisions of the commuting are gender, age, marital status and branch of activity that they do. As to the cantonal determinants, the coefficient of specialization (a measure of Gross Value Added) and the incidence of poverty, significantly influence the commuting.

This paper analyses the process of regional economic convergence in Ecuador from 2007 to 2014, using parametric and non-parametric models. Applying a broad range of methods allows deriving complex empirical findings about the process of convergence, in the context of the high economic heterogeneity that persists over time in the Ecuadorian economy. Encouraging the enlargement of private sector, entering and staying more years in education, increasing the effectiveness of public investment and discouraging the inefficient credit activity are found to be important drivers of economic growth and regional convergence. Additionally, the non-parametric analysis reveals that the progress on the path of regional convergence is mainly due to the 2007-2010 upward transition of the group of poorest provinces. Still, the regional GVA distribution remains polarized and it seems that the group of rich provinces advances faster than the majorities’ one, making the achievement of regional convergence even more difficult in the years to come.

The aim of this study is to test the relative convergence hypothesis in Ecuador at cantonal level, considering a set of explanatory variables. Following Barro and Sala-i-Martin (1991), a model of nonlinear least squares (NLMS) is estimated using cross-sectional data from 2007 to 2012. The main findings indicate absolute convergence rate of 1,37% per annum between municipalities. With the conditioning factors (illiteracy rate, percentage of households with electricity grid, the average number of children, agricultural production, manufacturing and remittances as a percentage of cantonal gross value added) the convergence rate is reduced to 1,12% annually, indicating that differences in these variables explain a considerable part of the slow territorial convergence in Ecuador.

This paper aims to present the economic heterogeneity of Ecuador’s regions using a descriptive analysis, and also to explain its main causes and implications. In comparison to the European Union, Ecuador exhibits a much higher degree of economic heterogeneity within regions and provinces. We relate this pattern to the dynamics of the economic structure, and we also highlight the progress done by now in enhancing regional convergence in Ecuador. The implications of the regional economic heterogeneity are important for the design of effective governmental policies.

The oil sector represents a key-sector of the Ecuadorian economy, characterised by a high level of value added and a high weight in the national exports. This paper tries to find out whether the oil sector is able to induce positive effects for other economic sectors, and to also measure these effects in comparison with those generated by other sectors. The empirical analysis uses the income and employment multipliers, which are derived from Leontief Input-Output tables. The results indicate that the Ecuadorian oil sector is the most independent one, so that policies enhancing stronger linkages with other sectors are highly recommended.

International migration has some interesting branches. In this research the effect of international migration experience in occupational mobility of returned migrants to the country of origin will be analyzed. This issue that has not been studied in depth in Ecuador. The investigation focuses on a comparative perspective between heads of household migrants and non-migrants. Reach the objective of this study the information source data used is the LAMP two provinces of Ecuador. In the case of Ecuador the information was obtained through Pydlos project of the University of Cuenca. The study uses the logistic model. The results show the impact of the occupational mobility of the migratory experience of household heads given their socioeconomic, educational and occupational characteristics: where is showed that migrants have a different occupational mobility comparing with the rest of the population.

This study aims to measure the relationship between the credit activity developed by savings and credit cooperatives and economic performance in Ecuador, from two perspectives: tosectoral and entrepreneurial level. The sectoral analysis is carried outusing annual data of 11 productive sectors for the period 2007-2014, through a panel data model. On the other hand, enterprise-level analysisis carried out through the impact evaluation methodology based on Propensity Score Matching, using information provided by the Survey of Living Conditions - Fifth Round for the period 2005-2006. The main results show a positive but not significant relationship between the expansion of credit activity of the savings and credit cooperativesand the economic performance at the sectoral level; while the entrepreneurial level analysis reveals a significant andpositive impact of credit granted by the savings and credit cooperativeson sales revenue of the beneficiary enterprises.

This paper analyzes the corrumption of the main cities of Mexico cost of legality. Various panel econometric models where the dependet variable is the corruption indez are performed, and the independent or explanatory variables are the ease of doing business, per capita income, by the theory

The following is a discussion about assumed human behavior upon which organizational theory has been built. The analysis allows to conclude that these assumptions not only have hardly evolved from a traditional stance about organizations, but they have rather become more rigid since,in addition to seeingit as a utilitarian and individual attitude of human behavior, which is considered a criminal act, leaves aside qualitiessuch as motivational factors, the creation of values, creativity, a sense of cooperation and solidarity, and the generation of trust among individual persons. These aspects should promote new research, or past research should be reviewed, so that new model proposals can arise with more realistic solutions to organizational conflict.