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Trade diversification in Colombia, 1991-2011

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  • Ricardo Argüello

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Abstract

In this paper we describe the evolution of international trade and the behaviour of export diversification in Colombia during the 1991-2011 period. In order to measure trade diversification and follow its behaviour throughout the period, we employ alternative ways of decomposing trade flows in their intensive and extensive margins, using the latter as a measure of diversification. The results indicate that trade diversification in Colombia is relatively limited, and seems to follow a pattern according to which exports are diversified mainly through increases in the number of products rather than in the number of partners. At the same time imports tend to diversify mainly by increases in the number of countries of origin rather than by the number of products. Furthermore, trade with upper middleincome countries seems to be an important driver of trade diversification. ***** En este artículo se describe la evolución del comercio internacional y el comportamiento de la diversificación de este en Colombia durante el período 1991-2011. Para la medición de la diversificación del comercio y su seguimiento, se emplean formas alternativas de descomponer el comercio en sus márgenes intensivo y extensivo, empleando estos últimos como medida de la diversificación. Los resultados indican que la diversificación del comercio es relativamente limitada y que parece seguir un patrón de acuerdo con el cual las exportaciones se diversifican principalmente mediante un mayor número de productos, mientras que las importaciones lo hacen principalmente a través de un mayor número de países de origen. Además, el crecimiento del comercio con países de ingresos medios altos parece ser un determinante de este patrón.

Suggested Citation

  • Ricardo Argüello, 2017. "Trade diversification in Colombia, 1991-2011," Revista Cuadernos de Economía, Universidad Nacional de Colombia -FCE - CID, vol. 36(71), pages 345-378, July.
  • Handle: RePEc:col:000093:015358
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    More about this item

    Keywords

    Export diversification; import diversification; trade margins; Colombia; empirical trade studies;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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