Economic Growth and Expansion of the Agricultural Frontier, Case Study: Ecuador (1985 - 2015)

In this research, the relationship between the agricultural frontier and production for Ecuador in the period 1985 -2015 is analyzed. It begins with a review of the existing literature, then, econometric models of autoregressive vectors and error correction are used. The results show that as production rises, an increase in the agricultural frontier is generated; results that are consistent when additional covariates are added. Among the main results, it is observed that the autoregressive vector model demonstrates that the variables (production and agricultural frontier) have a long-term equilibrium relationship. Also, the error correction model indicates that as the gross domestic product increases, the agricultural frontier expands. In conclusion, the results are coherent with each other and reinforce the idea that the Ecuadorian economy in the period of the analysis is still tied to dependence on livestock products.