Efficiency in agricultural proEfficiency in agricultural production: an analysis of the effect of road construction in productive areas of Ecuador

Projects for the construction and rehabilitation of access roads to productive areas are essential for economic development, even more so in countries with a large agricultural participation in their productive structure. In Ecuador, between 2010 and 2015, more than USD1.000 million dollars were inv...

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Autor principal: Zhangallimbay, Donald (author)
Altres autors: Ordoñez, Martín (author)
Format: article
Idioma:spa
Publicat: 2022
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Accés en línia:https://estudioseconomicos.bce.fin.ec/index.php/RevistaCE/article/view/395
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Sumari:Projects for the construction and rehabilitation of access roads to productive areas are essential for economic development, even more so in countries with a large agricultural participation in their productive structure. In Ecuador, between 2010 and 2015, more than USD1.000 million dollars were invested in the construction of physical infrastructure, which includes first, second and third level highways, generating relevant impacts on various productive elements of the country. In this work, through a difference-in-differences model, the effects of two highway construction and rehabilitation projects in the provinces of El Oro and Manabí are estimated. The results suggest that these projects generate a positive impact on the productivity of the banana sector and on total sales of permanent crops. However, the same does not happen in the case of the total production area. The results show effects in the short term and no conclusions can be drawn about the sustainability of the effect because the information is available only until the year 2020.