Factors Affecting The Employment In Manufacturing Industry Of Ecuador

In the last years the Ecuadorian and Chinese economies have been linked both at trade agreements as political and social, Ecuador has seen a considerable increase of Chinese imports in the last years. Ecuador and China began their trade and economic relations by signing a trade agreement in 1975 and some years later diplomatic embassies were opened in the respective territories. At present, China has made investments in Ecuador especially over industry and strategic sectors. Is for this reason that the Ecuadorian economy has had a considerable growth of Chinese imports, a sample of this, is in 2013 the manufacturing imports were $ 44’2064.779 meaning an increase of 28% compared to 2010. This increase was particularly impacted on the employment in Manufacturing Industry. Therefore this paper aims to analyze the impact of the main factors affecting the employment in manufacturing of Ecuador.On this analysis also I used other variables such as; GDP, Literacy Rate, Work Force and Population. Considering that all variables are stronger significant and R-Squared value was 99.9%; however, the main variable is Chinese imports. The time frame for analysis is a 14-years period,2000-2013 monthly data; the econometric regression has been testing by Robustness check. Where an empirical analysis reveals that the Chinese imports had negative relationship with the employment. Meaning that the increase in Chinese imports decreased employment in Ecuador manufacturing sector.