National production and gross fixed capital formation as growth factors of the Ecuadorian economy

Abstract

The objective of the research is to know the relation of the National Production with the Gross Formation of Fixed Capital (GFKC) and the Economically Active Population (EAP) of the Ecuadorian economy during the period 2000-2016, considering that the last years have had a high level of economic growth, the methodology of the model is based on the function of Cobb-Douglas, resulting for each percentage change of 1% in the variable GFKC and PEA generates a positive change in the production of 0.64% and 0.41% respectively, concluding that the model reflects a good connection between the variables, the national economy has presented an efficient economic activity for the considerable levels of investment and production.