Análisis de las instituciones en el crecimiento económico de Ecuador durante el período 1990-2022.

Abstract

This study employed Ordinary Least Squares with Heteroskedascity an Consistent Autocorrelation (Newey – West HAC) Standard Erros to analyze the effect of institutions - measured using the Institutional Quality Index - Ecuador’s economic growth during the period 1990 – 2022. The results showed that a 1% increase in the Institutional Quality Index was associated with a 0.079% increase in GPD, validating the working hypothesis proposed by Nawaz, (2015), namely, that institutions may have had a positive effect on Ecuador’s economic growth during the period 1990 – 2022. When using COVID2020 as a dummy variable to control for the effect associated with SARS-CoV-2, it was found that, once the supply shock was controlled for, the coefficient associated with institutional quality was positive and statisticall significant. Therefore, incorporating the dummy variable allows for a clearer identification of the relationship between economic growth and institutional quality in Ecuador and helps identify which structural shocks are associated with lower levels of significance.