Endogeneity of the natural rate of economic growth in Ecuador: 1970-2014

José Carrión Pesantez () and Diego Ochoa-Jiménez
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José Carrión Pesantez: Economista de la Universidad Técnica Particular de Loja.

Economía, 2018, vol. 43, issue 45, 49-71

Abstract: The objective of this paper is to verify that the natural growth rate is determined endogenously - contrary to the theory - and likewise to estimate the sensitivity of this growth rate for the Ecuadorian economy in the 1970-2014 period. The methodology consists in using the approach of Ordinary Least Squares (OLS) presented by Johansen. The results suggest that for Ecuador, the natural rate, elementary to maintain constant levels of unemployment, increases during boom periods and on the contrary, it decreases during economic recessions due the labor force and productivity are pliable to demand.

Keywords: endogenous growth; Okun; productivity; labor force. (search for similar items in EconPapers)
JEL-codes: C12 E23 E32 O40 (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:ula:econom:v:43:y:2018:i:45:p:49-71

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