EFFECTIVENESS OF STATE-DRIVEN PRODUCTIVE RECONVERSION: A CASE STUDY OF THE SHIFT ON PRODUCTION MATRIX IN ECUADOR.

Abstract

Over the last century, Ecuadorian economy has been characterized as being a supplier in the international commodity markets besides an importer of value added goods and services. In consequence, it has been a long-term specialization process focused on this type of production. It is, therefore, easy to verify that these types of outputs have more developed supply chains, leaving aside the industrial production with highest complex technological links, such as the manufactures or services sectors, which are generally considered as natural drivers of changes on any productive structure. Therefore, key sectors took in count in the input-output matrix, are only the primary sectors which have low productivity levels. This dynamic has a direct impact on returns and leave the country extremely dependable of volatile markets.
This paper has the aim of analysing productive structure of the Ecuadorian economy during the period 2000-2014. We calculated the industrial production comparing the GVA (Gross Value Added) on the basis of the Supply-Use Table, seeking thereby to identify improvements in the performance of the strategic sectors according to what is expected in production matrix change state-driven plan. Then, we determine, if any, increases in the supply chains, based on analysis of the technical coefficients, obtained from the Input-Output Matrices for the years 2007 and 2014. Using this framework, results suggest that in the case of the Ecuador, changes in inter-sectoral linkages are still weak. This despite the fact that is in force a system of policies to promote the process of productive reconversion, which apparently is not giving the outcomes expected by the Government.