Achieving sustainable models is a crucial challenge today, where government actions play a fundamental role. Therefore, this study aims to analyze the impact of fiscal decentralization on CO₂ emissions in 40 economies between 2000 and 2020. To this end, an unbalanced panel was constructed, and the Method of Moments Quantile Regression (MMQR) was employed. As a robustness check, Driscoll and Kraay’s standard errors approach was used. The MMQR results indicate that fiscal decentralization has a positive and significant effect across all quantiles of CO₂ emissions. Additionally, it was found that revenue-side decentralization has a greater impact on the lower quantiles of CO₂ emissions, while expenditure-side decentralization has a stronger effect on the upper quantiles. The findings also reveal that renewable energy mitigates CO₂ emissions, whereas economic growth, resource rents, and information and communication technologies increase them, although the latter with lower statistical significance. These findings are expected to serve as a basis for public policy formulation aimed at improving environmental quality.

Purpose: This study aims to investigate the linear and threshold effects of external debt on economic growth in eleven Latin American countries between 1990 and 2023. Design/methodology/approach: The generalized method of moments (GMM) is used to estimate the linear effect, given its efficiency in addressing endogeneity, serial autocorrelation and heterogeneity. Threshold regression for panel data (TRP) is also used to examine potential nonlinear relationships. Findings: The results yielded three main findings. First, external debt has a significant and negative impact on economic growth. Second, no statistically significant external debt-to-gross domestic product (GDP) threshold was identified, demonstrating that the negative effect of debt persists regardless of its level. Third, an investment threshold was determined that mitigates this negative effect; when gross fixed capital formation exceeds 19.73% of GDP, the adverse impact of debt ceases to be significant, suggesting that investment acts as a debt-absorbing mechanism. Originality/value: The research combines complementary econometric approaches to analyze in depth the effects of external debt in a relatively unexplored region like Latin America. Furthermore, it incorporates robustness tests that divide the sample according to the identified investment threshold, providing key empirical evidence for the design of public policies aimed at improving the channeling and efficiency of public borrowing.

Purpose: The objective of this study is to analyze the long-term impact of globalization on Ecuador’s economic development during the period from 1990 to2021. Design/methodology/approach: The techniques of fully modified least squares (FMOLS), dynamic ordinary least squares (DOLS) and canonical cointegration regression (CCR) were used to assess how globalization, measured by the Konjunkturforschungsstelle (KOF) index, influenced Ecuador’s Human Development Index (HDI). Key control variables such as financial development, health expenditure, gross fixed capital formation, renewable energy and the impact of COVID-19 were included. Findings: The results show that globalization has had a positive and significant impact on economic development, aligning with the neoclassical growth theory. Additional findings indicate that financial development, health expenditure and capital formation positively contribute to economic development, whereas renewable energy exhibits non-significant effects and COVID-19 has a negative impact. Originality/value: This study contributes to the existing literature by providing updated empirical evidence in the context of a developing country and offers recommendations for future research on the differentiated effects of globalization.

En este artículo se analiza el impacto de la globalización en el desarrollo económico de Ecuador durante el periodo 1990-2021. Utilizando un enfoque econométrico robusto, basado en un modelo de mínimos cuadrados ordinarios (MCO), el estudio evalúa cómo la globalización, medida a través del índice KOF, ha influido en el Índice de Desarrollo Humano (IDH) de Ecuador. Se incluyen variables de control clave como el desarrollo financiero, el gasto en salud y el impacto del COVID-19. Los resultados muestran que la globalización ha tenido un impacto positivo y significativo en el desarrollo económico, alineándose con la teoría neoclásica del crecimiento. Sin embargo, se discuten también los desafíos que este proceso implica, como la necesidad de políticas públicas efectivas para maximizar los beneficios. Este estudio contribuye a la literatura existente al proporcionar evidencia empírica actualizada en el contexto de un país en desarrollo, y ofrece recomendaciones para futuras investigaciones sobre los efectos diferenciados de la globalización.