Discussing the inter-sectoral linkages in Ecuador, with a focus on the oil sector

Abstract

The oil sector represents a key-sector of the Ecuadorian economy, characterised by a high level of value added and a high weight in the national exports. This paper tries to find out whether the oil sector is able to induce positive effects for other economic sectors, and to also measure these effects in comparison with those generated by other sectors. The empirical analysis uses the income and employment multipliers, which are derived from Leontief Input-Output tables. The results indicate that the Ecuadorian oil sector is the most independent one, so that policies enhancing stronger linkages with other sectors are highly recommended.