Foreign direct investment and economic freedom as determinants of Ecuador's economic growth in the short and long term

Authors

DOI:

https://doi.org/10.25097/rep.n29.2019.06

Keywords:

Economic growth, foreign direct investment, economic freedom.

Abstract

This research examines the effect of foreign direct investment (FDI) and economic freedom (LE) on economic growth (GDP) in Ecuador. Wor ld Bank and Heritage Foundation time series data for the 1980-2017 period are published. Through the ARDL and ECM models, the results of a stable short and long term relationship between the variables. We also find bidirectional causality between the formation of fixed capital and FDI and unidirectional causality from FDI to GDP. One implication of economic policy derived from this research is to maintain a good macroeconomic and legal environment. In addition, not only to attract foreign capital, but also to help the poor achieve the minimum amount of education necessary to achieve pr oductive linkages of FDI in local services.

Downloads

Download data is not yet available.

Downloads

Published

2019-01-03

How to Cite

Ortiz, C., Salinas, A., Alvarado, R., & Ponce, P. (2019). Foreign direct investment and economic freedom as determinants of Ecuador’s economic growth in the short and long term. Economy and Politics Journal, (29), 105–124. https://doi.org/10.25097/rep.n29.2019.06

Issue

No. 29 (2019): january/june

Section

Artículos

License

The Journal declines any responsibility for possible conflicts derived from the authorship of the works that are published in it.
The University of Cuenca in Ecuador conserves the patrimonial rights (copyright) of the published works and will favor the reuse of the same ones, these can be: copy, use, diffuse, transmit and expose publicly.
Unless otherwise indicated, all contents of the electronic edition are distributed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.