Impact of globalization on local economic development: case study of the province of Azuay

This project seeks to analyze and study the impact of globalization on local development, that is, in the province of Azuay. Our main purpose is in the interpretation of the phenomena that originate in the process of globalization of the labor market. The emigration of labor force towards the markets of developed countries causes two important facts that affect the functioning of the local economy. On the one hand, the expulsion of qualified labor, makes the cost of production of the provincial companies more expensive, losing competitiveness in relation to the whole of the national economy and that of neighboring countries. On the other hand, the remittances of the workers who have emigrated, injected from a fresh capital flow to the local economy, promoting conditions for a positive cycle of economic growth, creating an important potential demand. However, currency flows from the remittances of emigrants cause serious distortions in the local productive apparatus, since they do not go to investment in the main sectors of the provincial economy, but are oriented to the demand for import imports and investment in the real estate market. The records noted, propose an interesting perspective for research, in terms of the analysis of the competitiveness of the economy that expels labor and the new orientation that can be printed to the local development process from the sources of internal financing that come from the currency flow resulting from the remittances.