Labor Productivity: A Shift- Share Analysis for the Ecuadorian Case

Labor productivity is a key indicator for assessing economic efficiency. However, in recent years, it has experienced a concerning global decline, with an annual contraction of 6,4 %. In Ecuador, labor productivity has shown a decreasing trend over the past decade. Therefore, this study examines changes and spatial effects in provincial labor productivity levels in Ecuador from 2010 to 2022. Using panel data from the Central Bank of Ecuador and the National Institute of Statistics and Censuses, we applied traditional and spatial shift-share methods. These methods allow for the decomposition of productivity growth into national, structural, and regional effects. The findings revealed that the Ecuadorian economy remains vulnerable due to its reliance on primary activities, although a shift toward a more service-oriented model is evident. Provinces suchas Pichincha, Guayas, and Azuay serve as development hubs, positively influencing neighboring provinces through economic spillovers. Based on these results, the paper recommends strengthening specific strategies such as economic diversification, increased investment in research and development, and promoting trade links with countries and partners that can boost labor productivity.

• Huvudupphovsman: Conde, Marjorie (author)
• Materialtyp: article
• Språk: spa
• Publicerad: 2025
• Ämnen: Regional Development; Economic Activity Spatial; Structural Change; Desarrollo regional; Actividad económica; Espacial; Cambio estructural
• Länkar: https://estudioseconomicos.bce.fin.ec/index.php/RevistaCE/article/view/508