CALIDAD DEL GASTO PÚBLICO EN ECUADOR: DEL CONSENSO DE WASHINGTON AL SOCIALISMO DEL SIGLO XXI

Abstract

This paper presents a comparison of the quality of public expenditure between the period derived from the Washington Consensus and the period influenced by the XXI Century Socialism in Ecuador. The research question raised is, in what measure has influenced the public spending during the two models in the Ecuadorian economic growth? A simple linear regression is performed between the variables of total expenditure of the non-financial public sector (NFPS) and the Gross Domestic Product (GDP) in the years 1994-2002 and 2007-2015. Current quarterly data from the Central Bank of Ecuador and International Monetary Fund are used for each period for the exercise of regression and statistical tests of Student t test and F Fischer. It is concluded that public spending had greater impact on economic growth during the period of the XXI Century Socialism, than during the neoliberalism period subsequent to the Washington Consensus.