The public capital as a determinant factor of economic growth. The Ecuadorian case, 2001-2017

Authors

  • Igor Ernesto Díaz Kovalenko Facultad de Ciencias Sociales, Educación Comercial y Derecho. Universidad Estatal de Milagro. Milagro, Ecuador
  • Karina Patricia Arévalo Briones Universidad Técnica Estatal de Quevedo

DOI:

https://doi.org/10.18779/csye.v6i1.513

Keywords:

public capital, economic growth, statistical growth accounting, , total factor productivity

Abstract

This article analyzes the importance of public investment as a determinant of economic growth, specifically addressing the Ecuadorian case through the analysis of the 2001-2017 stage, characterized by the adoption of the dollar as the official currency and largely by a strong fiscal expansion. An aggregate production function that includes public capital is used. In this way we can decompose economic growth through the statistical method of growth accounting, using two clearly differentiated groups: the accumulation of productive factors (extensive growth), including public physical capital and technological progress (intensive growth).

The results obtained confirm that the accumulation of physical capital and especially the increase in employment have played a prominent role in the advances in per capita income in recent decades, while the contribution of total factor productivity has been much more moderate. Thus, for the period 2001-2017, the average contribution of public capital was 0.49 percentage points to the average annual output growth of 3.82%, which means that around 13% of the recorded growth has been due to the effect of public capital.

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Published

2022-06-30

How to Cite

Díaz Kovalenko, I. E. ., & Arévalo Briones , K. P. (2022). The public capital as a determinant factor of economic growth. The Ecuadorian case, 2001-2017. Journal of Social and Economics Science, 6(1), 1–10. https://doi.org/10.18779/csye.v6i1.513

Issue

Vol. 6 No. 1 (2022): Journal of Social Science and Economics

Section

Social Science

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Copyright (c) 2022 Igor Ernesto Díaz Kovalenko, Karina Patricia Arévalo Briones

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