Oil, Agriculture, and the Public Sector : Linking Intersector Dynamics in Ecuador
In a recent paper, Fiess and Verner (2000) analyse sectoral growth in Ecuador and find significant long-run and short-run relationships between the agricultural, industrial and service sectors. They take this as evidence against the dual economy mo...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2003/07/2874564/oil-agriculture-public-sector-linking-intersector-dynamics-ecuador http://hdl.handle.net/10986/18156 |
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okr-10986-181562021-04-23T14:03:41Z Oil, Agriculture, and the Public Sector : Linking Intersector Dynamics in Ecuador Fiess, Norbert M. Verner, Dorte AGRICULTURAL ECONOMICS AGRICULTURAL INTENSIFICATION AGRICULTURAL PRODUCTS AGRICULTURAL SECTOR AGRICULTURE ASYMPTOTIC DISTRIBUTION AUTOCORRELATION CALCULATION CAPITAL FLOWS CAPITAL GOODS COINTEGRATION COMPETITIVENESS DEBT DEVELOPING COUNTRIES DEVELOPING WORLD DIVERSIFICATION DUAL ECONOMY ECONOMETRIC MODELS ECONOMETRICS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC INTEGRATION ECONOMICS ENDOGENOUS VARIABLES EQUATIONS EQUILIBRIUM EXPORT DIVERSIFICATION EXPORTS FARMERS FEED FINANCIAL SECTOR FOOD PROCESSING FOOD PRODUCTS GROWTH LITERATURE GROWTH PROCESS HYPOTHESES INCOME INDUSTRIAL SECTOR INTEREST RATES INTERMEDIATE GOODS KURTOSIS LONG RUN MACROECONOMIC INSTABILITY MATRICES MATRIX MAXIMUM LIKELIHOOD ESTIMATION NATURAL RESOURCES 0 HYPOTHESIS OIL OIL RESERVES OIL SECTOR PARTIAL EQUILIBRIUM ANALYSIS POLICY RESEARCH PRODUCTIVITY PUBLIC SECTOR PUBLIC SERVICES RANDOM ERRORS RAPID GROWTH REAL GDP RELATIVE IMPORTANCE SAMPLE SIZE SKEWNESS STATISTICAL ANALYSIS TIME SERIES WEALTH SUSTAINABLE GROWTH PETROLEUM INDUSTRY In a recent paper, Fiess and Verner (2000) analyse sectoral growth in Ecuador and find significant long-run and short-run relationships between the agricultural, industrial and service sectors. They take this as evidence against the dual economy model which rules out a long-run relationship between agricultural and industrial output and show further that a more detailed picture of the growth process can be discovered, once the agricultural, industrial and service sectors are disaggregated further into intrasector components. This paper extends their initial results and provides insight from a multivariate cointegration analysis of intrasector components. The authors are able to identify three cointegrating relationships, each of which has its own meaningful economic interpretation: Two cointegration relationships capture the direct and indirect effects of the "petrolization" of the Ecuadorian economy. A third relationship clearly indicates a link between agriculture and industrial activity. Since this third cointegrating relationship seems to coincide in time with the trade liberalisation at the end of the 1980s, promoting agriculture appears to be an important way to promote sustainable economic growth in Ecuador. 2014-05-05T18:48:34Z 2014-05-05T18:48:34Z 2003-07 http://documents.worldbank.org/curated/en/2003/07/2874564/oil-agriculture-public-sector-linking-intersector-dynamics-ecuador http://hdl.handle.net/10986/18156 English en_US Policy Research Working Paper;No. 3094 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Latin America & Caribbean Ecuador |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
AGRICULTURAL ECONOMICS AGRICULTURAL INTENSIFICATION AGRICULTURAL PRODUCTS AGRICULTURAL SECTOR AGRICULTURE ASYMPTOTIC DISTRIBUTION AUTOCORRELATION CALCULATION CAPITAL FLOWS CAPITAL GOODS COINTEGRATION COMPETITIVENESS DEBT DEVELOPING COUNTRIES DEVELOPING WORLD DIVERSIFICATION DUAL ECONOMY ECONOMETRIC MODELS ECONOMETRICS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC INTEGRATION ECONOMICS ENDOGENOUS VARIABLES EQUATIONS EQUILIBRIUM EXPORT DIVERSIFICATION EXPORTS FARMERS FEED FINANCIAL SECTOR FOOD PROCESSING FOOD PRODUCTS GROWTH LITERATURE GROWTH PROCESS HYPOTHESES INCOME INDUSTRIAL SECTOR INTEREST RATES INTERMEDIATE GOODS KURTOSIS LONG RUN MACROECONOMIC INSTABILITY MATRICES MATRIX MAXIMUM LIKELIHOOD ESTIMATION NATURAL RESOURCES 0 HYPOTHESIS OIL OIL RESERVES OIL SECTOR PARTIAL EQUILIBRIUM ANALYSIS POLICY RESEARCH PRODUCTIVITY PUBLIC SECTOR PUBLIC SERVICES RANDOM ERRORS RAPID GROWTH REAL GDP RELATIVE IMPORTANCE SAMPLE SIZE SKEWNESS STATISTICAL ANALYSIS TIME SERIES WEALTH SUSTAINABLE GROWTH PETROLEUM INDUSTRY |
| spellingShingle |
AGRICULTURAL ECONOMICS AGRICULTURAL INTENSIFICATION AGRICULTURAL PRODUCTS AGRICULTURAL SECTOR AGRICULTURE ASYMPTOTIC DISTRIBUTION AUTOCORRELATION CALCULATION CAPITAL FLOWS CAPITAL GOODS COINTEGRATION COMPETITIVENESS DEBT DEVELOPING COUNTRIES DEVELOPING WORLD DIVERSIFICATION DUAL ECONOMY ECONOMETRIC MODELS ECONOMETRICS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC INTEGRATION ECONOMICS ENDOGENOUS VARIABLES EQUATIONS EQUILIBRIUM EXPORT DIVERSIFICATION EXPORTS FARMERS FEED FINANCIAL SECTOR FOOD PROCESSING FOOD PRODUCTS GROWTH LITERATURE GROWTH PROCESS HYPOTHESES INCOME INDUSTRIAL SECTOR INTEREST RATES INTERMEDIATE GOODS KURTOSIS LONG RUN MACROECONOMIC INSTABILITY MATRICES MATRIX MAXIMUM LIKELIHOOD ESTIMATION NATURAL RESOURCES 0 HYPOTHESIS OIL OIL RESERVES OIL SECTOR PARTIAL EQUILIBRIUM ANALYSIS POLICY RESEARCH PRODUCTIVITY PUBLIC SECTOR PUBLIC SERVICES RANDOM ERRORS RAPID GROWTH REAL GDP RELATIVE IMPORTANCE SAMPLE SIZE SKEWNESS STATISTICAL ANALYSIS TIME SERIES WEALTH SUSTAINABLE GROWTH PETROLEUM INDUSTRY Fiess, Norbert M. Verner, Dorte Oil, Agriculture, and the Public Sector : Linking Intersector Dynamics in Ecuador |
| geographic_facet |
Latin America & Caribbean Ecuador |
| relation |
Policy Research Working Paper;No. 3094 |
| description |
In a recent paper, Fiess and Verner
(2000) analyse sectoral growth in Ecuador and find
significant long-run and short-run relationships between the
agricultural, industrial and service sectors. They take this
as evidence against the dual economy model which rules out a
long-run relationship between agricultural and industrial
output and show further that a more detailed picture of the
growth process can be discovered, once the agricultural,
industrial and service sectors are disaggregated further
into intrasector components. This paper extends their
initial results and provides insight from a multivariate
cointegration analysis of intrasector components. The
authors are able to identify three cointegrating
relationships, each of which has its own meaningful economic
interpretation: Two cointegration relationships capture the
direct and indirect effects of the "petrolization"
of the Ecuadorian economy. A third relationship clearly
indicates a link between agriculture and industrial
activity. Since this third cointegrating relationship seems
to coincide in time with the trade liberalisation at the end
of the 1980s, promoting agriculture appears to be an
important way to promote sustainable economic growth in Ecuador. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Fiess, Norbert M. Verner, Dorte |
| author_facet |
Fiess, Norbert M. Verner, Dorte |
| author_sort |
Fiess, Norbert M. |
| title |
Oil, Agriculture, and the Public Sector : Linking Intersector Dynamics in Ecuador |
| title_short |
Oil, Agriculture, and the Public Sector : Linking Intersector Dynamics in Ecuador |
| title_full |
Oil, Agriculture, and the Public Sector : Linking Intersector Dynamics in Ecuador |
| title_fullStr |
Oil, Agriculture, and the Public Sector : Linking Intersector Dynamics in Ecuador |
| title_full_unstemmed |
Oil, Agriculture, and the Public Sector : Linking Intersector Dynamics in Ecuador |
| title_sort |
oil, agriculture, and the public sector : linking intersector dynamics in ecuador |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2003/07/2874564/oil-agriculture-public-sector-linking-intersector-dynamics-ecuador http://hdl.handle.net/10986/18156 |
| _version_ |
1764439004110913536 |