Spatial Aspects of Trade Liberalization in Colombia:A General Equilibrium Approach
AbstractThis paper offers some preliminary steps in the marriage of some of the theoretical foundations of thenew economic geography with spatial computable general equilibrium models. Modeling the spatial economy ofColombia using the traditional assumptions of CGE models makes little sense when one territorial unit, Bogotá,accounts for over one fourth of GDP and where transportation costs are high and accessibility low, compared toEuropean or North American standards. Hence, handling market imperfections becomes imperative as does theneed to address internal spatial issues from the perspective of Colombia´s increasing involvement with externalmarkets. The paper builds on the CEER Model, a spatial CGE model of the Colombian economy; non-constantreturns and non-iceberg transportation costs are introduced and some simulation exercises are carried out. Theresults confirm the asymmetric impacts that trade liberalization has on a spatial economy in which one region,Bogotá, is able to more fully exploit scale economies vis-à-vis the rest of Colombia. The analysis also reveals theimportance of different hypotheses on factor mobility and the role of price effects to better understand theconsequences of trade opening in a developing economy.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by BANCO DE LA REPÚBLICA in its series BORRADORES DE ECONOMIA with number 004690.
Date of creation: 21 May 2008
Date of revision:
Contact details of provider:
Economic geography; CGE model; Colombia; Efficiency gains;
Other versions of this item:
- E.A. Haddad & J. Bonet & G.J.D. Hewings & F.S. Perobelli, 2009. "Spatial aspects of trade liberalization in Colombia: A general equilibrium approach," Papers in Regional Science, Wiley Blackwell, vol. 88(4), pages 699-732, November.
- Eduardo A. Haddad & Jaime Bonet & Geoffrey. J.D.Hewings & Fernando S Perobelli, . "Spatial Aspects of Trade Liberalization in Colombia: A General Equilibrium Approach," Borradores de Economia 515, Banco de la Republica de Colombia.
- D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
- R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-05-31 (All new papers)
- NEP-CMP-2008-05-31 (Computational Economics)
- NEP-DEV-2008-05-31 (Development)
- NEP-GEO-2008-05-31 (Economic Geography)
- NEP-INT-2008-05-31 (International Trade)
- NEP-LAM-2008-05-31 (Central & South America)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ana María Iregui, .
"Decentralised Provision of Quasi- Private Goods: The Case of Colombia,"
Borradores de Economia
203, Banco de la Republica de Colombia.
- Iregui, Ana Maria, 2005. "Decentralised provision of quasi-private goods: The case of Colombia," Economic Modelling, Elsevier, vol. 22(4), pages 683-706, July.
- Ana María Iregui, 2002. "Decentralised Provision Of Quasi-Private Goods: The Case Of Colombia," BORRADORES DE ECONOMIA 002251, BANCO DE LA REPÚBLICA.
- Alberto F. Ades & Edward L. Glaeser, 1994.
"Trade and Circuses: Explaining Urban Giants,"
NBER Working Papers
4715, National Bureau of Economic Research, Inc.
- Glaeser, E.L. & Ades, A.F., 1993. "Trade and Circuses: Explaining Urban Giants," Harvard Institute of Economic Research Working Papers 1646, Harvard - Institute of Economic Research.
- Johannes Bröcker & Martin Schneider, 2002.
"How Does Economic Development in Eastern Europe Affect Austria's Regions? A Multiregional General Equilibrium Framework,"
Journal of Regional Science,
Wiley Blackwell, vol. 42(2), pages 257-285.
- Bröcker, Johannes & Schneider, Martin, 1999. "How does economic development in eastern Europe affect Austria's regions? A multiregional general equilibrium framework," Discussion Papers 1/99, Dresden University of Technology, Faculty of Transportation and Traffic Sciences "Friedrich List", Institute for Transport and Economics.
- Attanasio, Orazio & Goldberg, Pinelopi & Pavcnik, Nina, 2003.
"Trade Reforms and Wage Inequality in Colombia,"
CEPR Discussion Papers
4023, C.E.P.R. Discussion Papers.
- Diego Puga, 1996.
"Urbanisation patterns: European vs less developed countries,"
LSE Research Online Documents on Economics
20656, London School of Economics and Political Science, LSE Library.
- Diego Puga, 1996. "Urbanisation Patterns: European vs Less Developed Countries," CEP Discussion Papers dp0305, Centre for Economic Performance, LSE.
- Miles Kenneth LIGHT & Thomas Fox RUTHERFORD, 2003. "Free Trade Area of the Americas. An impact Assessment for Colombia," ARCHIVOS DE ECONOMÃA 002744, DEPARTAMENTO NACIONAL DE PLANEACIÓN.
- Hanson, Gordon H., 1998.
"Regional adjustment to trade liberalization,"
Regional Science and Urban Economics,
Elsevier, vol. 28(4), pages 419-444, July.
- Olga Alonso-Villar, 2000. "Large metropolises in the Third World: an explanation," Working Papers 0004, Universidade de Vigo, Departamento de Economía Aplicada.
- Maria Teresa Ramirezgiraldo & Ana Maria Ireguibohorquez & Maria Del Pilar Esguerra U, 2004. "Trade Between Colombiaand East Asia: An Analysis Using A Cgemodel," ENSAYOS SOBRE POLÍTICA ECONÓMICA, BANCO DE LA REPÚBLICA - ESPE.
- Jaime Bonet & Adolfo Meisel Roca, 2006. "El legado colonial como determinante del ingreso per cápita departamental en Colombia," DOCUMENTOS DE TRABAJO SOBRE ECONOMÃA REGIONAL 002520, BANCO DE LA REPÚBLICA - ECONOMÍA REGIONAL.
- Sánchez Fabio y Hernández Gustavo Adolfo, 2004. "Colombia: aumento de las exportaciones y sus efectos sobre el crecimiento, empleo y pobreza," REVISTA DESARROLLO Y SOCIEDAD, UNIVERSIDAD DE LOS ANDES-CEDE.
- Haddad, Eduardo A. & Hewings, Geoffrey J.D., 2005. "Market imperfections in a spatial economy: some experimental results," The Quarterly Review of Economics and Finance, Elsevier, vol. 45(2-3), pages 476-496, May.
- Pinelopi K. Goldberg & Nina Pavcnik, 2004. "Trade, Inequality, and Poverty: What Do We Know? Evidence from Recent Trade Liberalization Episodes in Developing Countries," NBER Working Papers 10593, National Bureau of Economic Research, Inc.
- Dirección de Estudios Económicos & Dirección de Desarrollo Empresarial, 2003. "Efectos de un acuerdo bilateral de libre comercio con Estados Unidos," ARCHIVOS DE ECONOMÃA 002426, DEPARTAMENTO NACIONAL DE PLANEACIÓN.
- Alexandre Alves Porsse & Eduardo Amaral Haddad & Paula Carvalho Pereda, 2014.
"Territorial Economic Impacts Of Climateanomalies In Brazil,"
Anais do XL Encontro Nacional de Economia [Proceedings of the 40th Brazilian Economics Meeting]
196, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
- Eduardo A. Haddad & Alexandre A. Porsse, Paula C. Pereda, 2012. "Territorial Economic Impacts of Climate Anomalies in Brazil," Working Papers, Department of Economics 2012_20, University of São Paulo (FEA-USP).
- Alexandre Porsse & Eduardo Haddad & Paula Pereda, 2013. "Territorial Economic Impacts of Climate Anomalies in Brazil," ERSA conference papers ersa13p705, European Regional Science Association.
- Arguello, Ricardo, 2009. "The Regional Impact of Discriminatory Trade Liberalization on Colombian Agriculture," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 39(2).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Norma Judith Paternina).
If references are entirely missing, you can add them using this form.