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Regional Structural Changes in Colombia: An Input-Output Approach

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  • Jaime Bonet

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Abstract

No previous work has focused on the analysis of the regional and interregional structure and structural changes in Colombia. An initial exploration using a parsimonious approach to the measurement of interregional interaction suggested a country with limited spatial interdependency. These findings were evaluated by taking advantage of a newly constructed interregional input-output model to measure the interactions within and between the Colombian regions. The direct and indirect production linkages effects are captured through the evaluation of the Leontief inverse matrices. The results suggest that key sectors have moved from primary and secondary sectors to tertiary sectors, which is a movement observed in the economic development process. However, it can be argued that the regional economies do not have exactly the same linkage structures. These differences are the result of discrepancies in the dominant sectors in each economy. The interregional linkages reveal a country with self-sufficient sectors in most of the regions, which supports the idea of a country with relatively poor interregional dependences, results that were also found in previous studies. The fact that the powerful backward and forward linkages are identified in the most prosperous regions instead of the lagged ones implies that the regional inequalities are likely to be sustained.

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Paper provided by Banco de la Republica de Colombia in its series Borradores de Economia with number 341.

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Handle: RePEc:bdr:borrec:341

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  1. Jaime Bonet, 2003. "Colombian regions: Competitive or complementary?," REVISTA DE ECONOMÍA DEL ROSARIO, UNIVERSIDAD DEL ROSARIO.
  2. Sonis, Michael & Guilhoto, Joaquim José Martins & Hewings, Geoffrey J.D. & Martins, Eduardo B., 1995. "Linkages, key sectors and structural change: some new perspectives," MPRA Paper 54754, University Library of Munich, Germany.
  3. Cella, Guido, 1984. "The Input-Output Measurement of Interindustry Linkages," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 46(1), pages 73-84, February.
  4. Michael Sonis & J. D. Hewings & Jiemin Guo, 2000. "A New Image of Classical Key Sector Analysis: Minimum Information Decomposition of the Leontief Inverse," Economic Systems Research, Taylor & Francis Journals, vol. 12(3), pages 401-423.
  5. Michael Sonis & Geoffrey Hewings & Sri Sulistyowati, 1997. "Block Structural Path Analysis: Applications to Structural Changes in the Indonesian Economy," Economic Systems Research, Taylor & Francis Journals, vol. 9(3), pages 265-280.
  6. Clements, Benedict J., 1990. "On the decomposition and normalization of interindustry linkages," Economics Letters, Elsevier, vol. 33(4), pages 337-340, August.
  7. Suahasil Nazara & Dong Guo & Geoffrey J.D. Hewings & Chokri Dridi, 2004. "PyIO: Input-Output Analysis with Python," Urban/Regional 0409002, EconWPA.
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Cited by:
  1. Eduardo A. Haddad & Fernando S. Perobelli & Jaime Bonet & Geoffrey J. D. Hewings, 2008. "Structural Interdependence among Colombian Departments," BORRADORES DE ECONOMIA 004722, BANCO DE LA REPÚBLICA.

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