Factor analysis of the relationships between governance and macroeconomic indicators in countries of the Andean community (2002-2018)

ANÁLISIS FACTORIAL DE LAS RELACIONES ENTRE GOBERNANZA E INDICADORES MACROECONÓMICOS EN PAÍSES DE LA COMUNIDAD ANDINA (2002-2018)

The purpose of this article is to review the relationships between governance and macroeconomic indicators for countries of the Andean Community (CAN). The approach is exploratory, using factor analysis to establish relationships between variables and then contextualize them with historical milestones in the selected countries. The resulting factors that explain the relationship between governance and macroeconomics fit the data by more than 70%, indicating satisfactory factor models. For all countries, the factor that best explains behavior combines governance and macroeconomic variables. In the factors, the constant is the instability of the variables, especially macroeconomic ones, which predominate in each of them. The models are pessimistic in showing that both macroeconomic aspects and governance variables remain stable above the average, but for short periods of time. The methodological design does not allow or expect to establish causal relationships or project trends, but it does observe, through milestones, some changes that could be interpreted by the different relationships between the variables studied.“Keywords: governance, macroeconomic environment, factor analysis, Andean Community.

DOI: http://dx.doi.org/10.21017/Rev.Repub.2023.v35.a147