Impact of Agricultural Exports on Agricultural Economic Growth in Ecuador: Case of Banana and Cocoa

Abstract

The contribution of this paper is to investigate the impact of agricultural exports on agricultural economic growth in Ecuador with the case of banana and cocoa. Annual time series data from the period between 1987 to 2017 was tested applying some econometrics techniques such as: Johansen co-integration test, Vector Auto Regression Model and Granger Causality test. The findings show there is no long run relationship between agricultural exports and agricultural economic growth on Ecuador, positive results were found in the short run regarding with banana exports, cocoa exports and agricultural capital formation It is concluded that policies should be implemented which aim to increase the quality and productivity of these crops.

Keywords: Agricultural economic growth, Banana exports, Cocoa exports

DOI: 10.7176/JESD/11-12-04

Publication date:June 30th 2020