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Agricultural Diversification and Economic Growth in Ecuador

Author

Listed:
  • Jennypher Pacheco

    (Department of Economy, Universidad Técnica Particular de Loja, Loja 11-01-608, Ecuador)

  • Wilman-Santiago Ochoa-Moreno

    (Department of Economy, Universidad Técnica Particular de Loja, Loja 11-01-608, Ecuador)

  • Jenny Ordoñez

    (Department of Economy, Universidad Técnica Particular de Loja, Loja 11-01-608, Ecuador)

  • Leonardo Izquierdo-Montoya

    (Department of Economy, Universidad Técnica Particular de Loja, Loja 11-01-608, Ecuador)

Abstract

The purpose of this article is to analyze the relationship between economic growth (measured by economic, social, and financial variables) and the agricultural productive structure, as well as its possibilities for diversification, in Ecuador’s 23 provinces in the year 2014. First, we constructed the Shannon-Weaver index. We then used the graphic cartograms method to select relationships between variables. Next, we calculated the Pearson coefficient and the covariance, which revealed the linear association among the study’s variables. This methodology led us to conclude that several variables (the gross added value of only agriculture, the average total household income, and the economically active population) have a positive influence on agricultural diversification; each province’s overall gross added value, while the level of education, the unemployment rate, and the volume of credit had a negative influence.

Suggested Citation

  • Jennypher Pacheco & Wilman-Santiago Ochoa-Moreno & Jenny Ordoñez & Leonardo Izquierdo-Montoya, 2018. "Agricultural Diversification and Economic Growth in Ecuador," Sustainability, MDPI, vol. 10(7), pages 1-17, June.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:7:p:2257-:d:155407
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    References listed on IDEAS

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