Second Nature Geography and Regional Income Disparities in Colombia
AbstractIn 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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Date of creation: 03 Jul 2008
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-08-21 (All new papers)
- NEP-DEV-2008-08-21 (Development)
- NEP-GEO-2008-08-21 (Economic Geography)
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