Elasticity of the Total Production measured by the Investment in Information and Communication Technologies: Evidence from the Ecuadorian Manufacturing Companies

Abstract

This article analyzes the use, access, and development of the Information and Communication Technologies (ICTs) in the Ecuadorian manufacturing companies during the period 2012-2014. The theoretical aspects around ICT, its importance, limitations, and challenges are summarized. Furthermore, this manuscript proves the lineal correlation between the total production in the manufacturing sector and the ICT investment, and develops a “log-log” regression model among both variables, which proves the elasticity of the total production with respect to the ICT investment. This document gives conclusions and recommendations for future studies in order to improve the ICT investment in the Ecuadorian manufacturing firms.