The impact of international trade on Ecuador's economic growth: an analysis for the period 2000-2022
Abstract
This study examines the impact of trade openness, foreign direct investment (FDI), and external debt on Ecuador's economic growth since 2000. Through an econometric approach, the opportunities and challenges these factors present for the country’s sustainable development are explored. The main results indicate that trade openness and FDI have a positive impact on economic growth, while external debt exerts a negative effect. A 1% increase in trade openness is associated with a 0.42% increase in GDP, while a similar increase in FDI generates a 0.31% positive impact. In contrast, a 1% rise in external debt is linked to a 0.21% decrease in GDP. The conclusions provide recommendations to strengthen Ecuador's resilience and competitiveness in an ever-changing international economic environment.
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