Financial Development of Savings and Credit Cooperatives of Ecuador and its Impact on Economic Growth

Abstract

Savings and Credit Cooperatives constitute alternative financial intermediation institutions that promote inclusion. The purpose of this study is to estimate the incidence of financial development of the cooperative sector of segments 1, 2 and 3; evaluated in the period 2016-2022 in the economic growth of Ecuador, calculated through the Gross Domestic Product. The methodology used contemplates the panel data model under consideration of fixed effects. The results indicate a positive relationship between the volume of microcredit and the variation in GDP; while variables such as credit risk, investment volume and profitability have a negative impact on economic growth.