Bianca Karina

Microcredit has emerged as an effective instrument for achieving financial inclusion, stimulating productive activities, and with this support, reinforcing economic growth. This study aims to examine the characteristics of microcredit financing in Ecuador and to quantify its impact on economic growth. The study employs quarterly data from 2013 to 2023. An Error Correction (VEC) model was utilized to ascertain the short- and long-term effects of microcredit and investment on GDP. The findings indicate that microcredit and investment do not exert a significant short-term influence on GDP. However, in the long term, a 1% change in investment is associated with a 0.11% positive impact on GDP. Similarly, a 1% shift in microcredit is linked to a 1.17% favorable effect on GDP. Ultimately, there is a unidirectional causal relationship between GDP and microcredit.