Microcrédito, producción y valor agregado de la provincia de El Oro

This study analyzes the impact of microcredit on production and value added in the province of El Oro, Ecuador, based on the premise that access to finance can catalyze local economic development. The purpose of this paper is to identify the marginal contribution and sensitivity of microcredit to GDP and GVA. To assess this relationship, microcredit balances granted by Credit Unions (COACs) in El Oro were collected and regional economic account balances of GDP and GVA were compiled. The results reveal that for every dollar of microcredit, GDP and GVA increase by $3.16 and $1.75, respectively. Logarithmic models show that the elasticities of GDP and GVA with respect to microcredit are greater than 1, suggesting a high sensitivity of microcredit to changes in GDP and GVA. Despite the contribution of microcredit to the economic stability of the province, the success of microcredit is neither immediate nor direct; it requires complementary policies that improve the financial education and entrepreneurial skills of the beneficiaries. Future research is suggested to include the evaluation of these complementary policies.