THE IMPACT OF FOREIGN DIRECT INVESTMENT ON THE ECONOMIC GROWTH OF ECUADOR. PERIOD 2000-2019

Abstract

The following study aims to analyze the impact of foreign direct investment on Ecuador’s economic growth in the period
2000-2019. The development of the work uses quarterly data obtained in the Central Bank of Ecuador with the exception of
the Country Risk that has been compiled from the Ambito website. Using an Autoregressive Vector (VAR) model, it is found
that Foreign Direct Investment does not have significant effects on economic activity. Finally, it can be seen that shocks in the
Trade Opening tend to reduce country risk and boost the economy.