Evolución del empleo y crecimiento económico en la ciudad de Machala, período 2010-2020.

Abstract

This paper analyzes economic growth and employment in the city of Machala during 2010-2020. Therefore, the elasticity of employment was used to determine how it has evolved with respect to productivity. The elasticity of employment varies over time mainly due to economic conditions and the ability to solve the problem of not generating more employment. In addition, there were drawbacks to perform a double log econometric model such as it was not robust and the coefficients of the estimation were biased by standard errors generating distrust to determine its effects with the dependent variable full employment and the explanatory variables gross value added, current income and investment expenditures of the GAD of Machala during 2010-2019. For this reason, two double log econometric models were carried out in order to know how the explanatory variables such as current income and investment of the GAD of Machala have contributed to the dependent variables such as underemployment and Gross Domestic Product of Ecuador. These two loglog models were feasible according to the validation tests Jarque Bera, homoscedasticity, VIF. Finally, every 1% increase in investment decreases the rate of underemployment by 0.89% and for every 1% increase in current spending, underemployment is reduced by 1.56%. On the other hand, if 1% is allocated to investment, it contributes 0.23% to GDP and every 1% increase in current spending contributes 0.09% to GDP.