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Intersectoral dynamics and economic growth in Ecuador

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  • Fiess, Norbert M.
  • Verner, Dorte

Abstract

The authors analyze sectoral growth in Ecuador, using multivariate co-integration analysis. They find significant long-run relationships between the agricultural, industrial, and service sectors. Moreover, they are able to derive dynamic sector models that combine the short-run links between the three sectors with long-run dynamics. When disaggregate the three sectors into their intra-sectoral components, they discover many interesting relationships that contribute to a better understandingof inter- and intra-sectoral dynamics in the context of Ecuadorian economic growth. Their findings suggest that more attention should be paid to inter-dependencies in sectoral growth, since an improved understanding of inter-sectoral dynamics may facilitate the implementation of policy aimed at increasing economic growth in Ecuador. There appears to be no direct link between the oil sector, and the non-oil industrial sectors. But strong evidence supports co-integration between the oil industry, and financial services, as well as between the oil industry, and public services. This means, among other things, that the oil industry is likely to affect other sectors through the financial sector, the public sector, or both.

Suggested Citation

  • Fiess, Norbert M. & Verner, Dorte, 2001. "Intersectoral dynamics and economic growth in Ecuador," Policy Research Working Paper Series 2514, The World Bank.
    • Handle: RePEc:wbk:wbrwps:2514
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    Cited by:

    1. T. Ijaiya, Gafar, 2023. "Social Science Research Reporting: A Manual For Beginners," Working Papers 29, Department of Economics, University of Ilorin.
    2. Gaspar, João & Pina, Gilson & Simões, Marta, 2014. "Agriculture in Portugal: linkages with industry and services," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 95(04), pages 437-471, December.
    3. Verner, Dorte & Fiess, Norbert M., 2003. "Oil, agriculture, and the public sector: linking intersector dynamics in Ecuador," Policy Research Working Paper Series 3094, The World Bank.
    4. Ademe, Alelign & Mehare, Abule, 2023. "Agricultural Transformation Performance and Inter-Sectoral Linkages in Ethiopia," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 32(01), April.

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