Ecuador and its insertion in globalization: An analysis with the gravity model of trade (1970-2015)

Abstract

This paper represents an empirical analysis of the evolution of Ecuador's international trade and the trade opening towards globalization that the country has had since 1970. Thus, it provides different estimates of the gravity model to analyze the effect of their variables in the trade. Moreover, a comparison and analysis of the predicted trade against the real will be presented between Ecuador and its top ten partners. Finally, it will be analyzed the effect of being a member of the Andean Community and having US dollar as official currency in the Ecuadorian International Trade.