Spatial aspects of trade liberalization in Colombia: A general equilibrium approach
This paper offers some preliminary steps in the marriage of some of the theoretical foundations of new economic geography with spatial computable general equilibrium models. Modelling the spatial economy of Colombia using the traditional assumptions of computable general equilibrium (CGE) models makes little sense when one territorial unit, Bogotá, accounts for over one quarter of GDP and where transportation costs are high and accessibility low compared to European or North American standards. Hence, handling market imperfections becomes imperative as does the need to address internal spatial issues from the perspective of Colombia's increasing involvement with external markets. The paper builds on the Centro de Estudios de Economia Regional (CEER) model, a spatial CGE model of the Colombian economy; non-constant returns and non-iceberg transportation costs are introduced and some simulation exercises carried out. The results 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 the importance of different hypotheses on factor mobility and the role of price effects to better understand the consequences of trade opening in a developing economy. Copyright (c) 2009 the author(s). Journal compilation (c) 2009 RSAI.
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 88 (2009)
Issue (Month): 4 (November)
|Contact details of provider:|| Web page: http://www.blackwellpublishing.com/journal.asp?ref=1056-8190|
References listed on IDEAS
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, 2002.
"Decentralised Provision Of Quasi-Private Goods: The Case Of Colombia,"
BORRADORES DE ECONOMIA
002251, BANCO DE LA REPÚBLICA.
- 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, "undated". "Decentralised Provision of Quasi- Private Goods: The Case of Colombia," Borradores de Economia 203, Banco de la Republica de Colombia.
- 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, April.
- Hanson, Gordon H., 1998.
"Regional adjustment to trade liberalization,"
Regional Science and Urban Economics,
Elsevier, vol. 28(4), pages 419-444, July.
- Dirección de Estudios Económicos & Dirección de Desarrollo Empresarial, 2003. "Efectos de un acuerdo bilateral de libre comercio con Estados Unidos," ARCHIVOS DE ECONOMÍA 002426, DEPARTAMENTO NACIONAL DE PLANEACIÓN.
- María del Pilar Esguerra U & Ana María Iregui B. & María Teresa Ramírez G., 2004.
"Trade between Colombia and East Asia: An Analysis Using a CGE Model,"
Ensayos sobre Política Económica,
Banco de la Republica de Colombia, vol. 22(45), pages 116-171.
- 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, vol. 22(45), pages 116-171, June.
- Attanasio, Orazio & Goldberg, Pinelopi K. & Pavcnik, Nina, 2004.
"Trade reforms and wage inequality in Colombia,"
Journal of Development Economics,
Elsevier, vol. 74(2), pages 331-366, August.
- Attanasio, Orazio & Goldberg, Pinelopi & Pavcnik, Nina, 2003. "Trade Reforms and Wage Inequality in Colombia," CEPR Discussion Papers 4023, C.E.P.R. Discussion Papers.
- Orazio Attanasio & Pinelopi Goldberg & Nina Pavcnik, 2003. "Trade Reforms and Wage Inequiality in Colombia," NBER Working Papers 9830, National Bureau of Economic Research, Inc.
- 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.
- 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.
- Bröcker, Johannes & Schneider, Martin, 1999.
"How does economic development in eastern Europe affect Austria's regions? A multiregional general equilibrium framework,"
1/99, Technische Universität Dresden, "Friedrich List" Faculty of Transport and Traffic Sciences, Institute of Transport and Economics.
- 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.
- Olga Alonso-Villar, 2001.
"Large Metropolises in the Third World: An Explanation,"
Urban Studies Journal Limited, vol. 38(8), pages 1359-1371, July.
- Olga Alonso-Villar, 2000. "Large metropolises in the Third World: an explanation," Working Papers 0004, Universidade de Vigo, Departamento de Economía Aplicada.
- 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.
- Cristina Fernández, 1998.
"Agglomeration And Trade The Case Of Colombia,"
ENSAYOS SOBRE POLÍTICA ECONÓMICA,
BANCO DE LA REPÚBLICA - ESPE, vol. 17(33), pages 85-123, June.
- Alberto F. Ades & Edward L. Glaeser, 1995. "Trade and Circuses: Explaining Urban Giants," The Quarterly Journal of Economics, Oxford University Press, vol. 110(1), pages 195-227.
- Jaime Bonet Morón & Adolfo Meisel Roca, 2006.
"El legado colonial como determinante dl ingreso per cápita departamental en Colombia,"
Documentos de trabajo sobre Economía Regional
75, Banco de la Republica de Colombia.
- Jaime Bonet & Adolfo Meisel Roca, 2006. "El legado colonial como determinante del ingreso per cápita departamental en Colombia," DOCUMENTOS DE TRABAJO SOBRE ECONOMÍA REGIONAL 002520, BANCO DE LA REPÚBLICA - ECONOMÍA REGIONAL.
- Miles Kenneth LIGHT & Thomas Fox RUTHERFORD, 2003. "Free Trade Area of the Americas. An impact Assessment for Colombia," ARCHIVOS DE ECONOMÍA 002744, DEPARTAMENTO NACIONAL DE PLANEACIÓN.
When requesting a correction, please mention this item's handle: RePEc:bla:presci:v:88:y:2009:i:4:p:699-732. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F Baum)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.