The coastal economy revolves around shipping and trade.

Guayaquil, despite being destroyed on several occasions by fire and incessantly plagued by either yellow fever or malaria, is a center of vigorous trade among the colonies, a trade that is technically illegal under the mercantilist philosophy of the contemporary Spanish rulers.

The guiding principle of mercantilism in the New World is that the colonies exist to serve the commercial needs of Spain.

Since trade among the colonies will not enrich Spain, it is banned.

In addition to textiles and other light manufactures from the Sierra, hardwoods and cocoa from coastal plantations are exported from the port of Guayaquil to points all over Spanish America, while a wide variety of items are imported, including foods and wines from Peru.

Guayaquil also becomes the largest shipbuilding center on the west coast of South America before the end of the colonial period.