Analysis of the Business Dimension in the Construction Sector in Ecuador: An Economic Approach
Journal
Lecture Notes in Networks and Systems
Management, Tourism and Smart Technologies
ISSN
2367-3370
2367-3389
Date Issued
2024
Author(s)
Dayaneth Arroba-Naranjo
Ximena Morales-Urrutia
Diego Lara-Haro
Type
book-chapter
Abstract
The objective of this research work is to study the business size of the construction sector in Ecuador through the application of a panel data econometric model. It seeks to identify the factors that influence the growth of this sector. The study population is construction companies active in Ecuador, according to the ISIC F classification, in the period 2018–2021. A methodology is used that includes a descriptive analysis to establish the behavior of the sector variables, as well as a correlational analysis to measure the significance of these variables in relation to growth. In addition, a panel data model that applies the assumption of fixed effects is used to verify Gibrat’s Law, which establishes that all companies have the same probability of growing regardless of their size. In conclusion, a significant relationship was found between sales and business size and growth in the construction sector in Ecuador. However, Gibrat’s Law is rejected in this case study
Subjects