EFECTO DE LAS VARIACIONES DEL GASTO CORRIENTE SOBRE EL NIVEL DE EMPLEO EN EL ECUADOR

Abstract

Public spending in Ecuador throughout history has been an economic factor that has had an impact on the economy, since through the implementation of policies that increase this component, a country can grow economically, based on Okun's Law. . The objective of this research is to analyze the effect of the increase or decrease of current expenditure on the employment level of an economy. The variables to be used for this research work are: as a dependent variable the economically active population; as an independent variable, the total current expenditure made by the government, and the gross domestic product quarterly. To perform the statistical tests, the ordinary least squares method will be used to determine the relationship between the variables used on the Economically Active Population. In conclusion, in Ecuador current expenditure and GDP are one of the variables that move the economy, due to its high incidence generating job positions very apart from investment spending and total public expenditure.