Analysis of National Security Spending and Its Impact on the Country's Economic Development: 2004-2023 Period.

Abstract

This study focuses on carrying out an analysis of national security spending and its impact on the economic development of the country during the period between 2004 and 2023. An approach that combined quantitative and qualitative methods was used to analyze how variables related to the national security affect the Gross Fixed Capital Formation (FBKF) in Ecuador.

A multiple linear regression model was used using the Ordinary Least Squares (OLS) method in RStudio. Data were normalized for compatibility and assumptions such as normality, homoscedasticity, and multicollinearity were verified.

After analyzing the data collected from 2004 to 2023, it was found that the significant variables that positively or negatively impact the FBKF are the National Police, the National Defense and the homicide rate. Other variables such as the National Security Council, the National Transit Agency, and unemployment were discarded due to their lack of statistical significance.

This analysis highlights the importance of effective security policies to foster an environment conducive to investment and sustainable economic development in Ecuador. It is crucial that public policy decisions consider these outcomes to promote robust economic growth and mitigate the negative impacts of insecurity.

This study provides a detailed understanding of how national security influences fixed asset investment in Ecuador, highlighting the need for comprehensive strategies to improve security and promote long-term economic development.