Study of the destination of the remittances received and their impact on the economic development of the province of Azuay

It has usually been a local concern, trying to determine ways to ensure that the significant resources that come from abroad, product of the work of nationals, reduce in productive activities that become effective engines of local growth and development. It could be inferred that the lack of results is given by the absence of previous investigations, which establish the destiny given to resources. Consequently, there are also no adequate alternatives on how to change the current practices of money use, which empirically allow estimating, that they are adequate for an effective contribution to local development. The negative effects that also generate excess money in circulation would even have to be determined, such as the increase in prices, which is reflected in the fact that the city of Cuenca has the highest basic basket cost at the national level. The project aims to determine the destination of the resources received (remittances) from abroad and how and to what extent these contribute to local development. For this, it is required, through suitable economic models, to establish the parameters that allow, from a socio-economic survey, define the distribution of resources between consumption and savings. The study is based on the macroeconomic conception of national accounts in regard to the construction of available personal income, to the study of formal and informal financing markets and the contribution that will be given by the analysis of consumer behavior and its budget restriction.

III UNIVERSITY RESEARCH PROJECT COMPETITION