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Second Nature Geography and Regional Income Disparities in Colombia

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  • Jesús López-Rodríguez

    ()

  • María Cecilia Acevedo

Abstract

In this paper, we derive and estimate a New Economic Geography model for the Colombian departments.2 We first derive an econometric specification relating wages to a distance weighted sum of the volumes of economic activities of the surrounding locations. Them, we test our econometric specification with data for Colombian departments in the period 1975-2000. The empirical results confirm the theoretical predictions of our model, showing that second nature geography factors (access to consumer markets) are a key variable in explaining the spatial distribution of wages in Colombia.

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File URL: http://economia.uniandes.edu.co/publicaciones/dcede2008-09.pdf
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Bibliographic Info

Paper provided by UNIVERSIDAD DE LOS ANDES-CEDE in its series DOCUMENTOS CEDE with number 004983.

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Length: 28
Date of creation: 03 Jul 2008
Date of revision:
Handle: RePEc:col:000089:004983

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Keywords: New Economic Geography; Spatial Structure of Wages; Market Access;

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