Regional economic diversity and socio-economic performance in the provinces of Ecuador (period 2014-2018)
DOI:
https://doi.org/10.22267/rtend.222301.184Keywords:
economic concentration; economic development; regional development; development strategy; economic structure; development theoryAbstract
This article aims to estimate the effect of regional economic diversity on socioeconomic conditions in the provinces of Ecuador, taking as a reference the period 2014-2018. The research is explanatory, with a documentary, non-experimental, cross-sectional design, and uses analytical-synthetic and quantitative-empirical approaches as analysis methods. Econometric estimates made with cross-sectional data from the 24 provinces of Ecuador, using the Ordinary Least Squares method, suggest positive effects of the regional specialization coefficient and the concentration index on the volatility observed in income and growth. Likewise, regional specialization is associated with a higher poverty rate, while there is an inverse relationship between specialization and concentration with the average growth rate of the provinces. The study allowed to conclude, firstly, that development planning requires the reduction of the productive heterogeneities that an economy such as Ecuador presents and, secondly, that the benefits of development will only be widely perceived by the population to the extent that the regions diversify their economic activity.
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