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Productive Specialization and Factor Endowments in Emerging Municipalities: A Comparative Analysis of Tunja and Chiquinquirá (2017–2021)

Author

Listed:
  • Hermes Castro-Fajardo

    (Universidad de Cundinamarca, Seccional Ubate, Ubaté 250430, Colombia)

  • José Luis Niño-Amézquita

    (Facultad Humanidades y Ciencias Sociales, Universidad EAN, Bogotá 111321, Colombia)

  • Carolina Aguirre-Garzon

    (Academic of Commercial Engineering, Department of Social Sciences and Humanities, Universidad de Aysén, Coyhaique 5950000, Chile
    Facultad de Ciencias Económicas y Administrativas, Universidad Católica de la Santísima Concepción, Concepción 4070129, Chile)

  • Jheisson Abril-Teatin

    (Facultad de Ciencias Económicas y Administrativas, Universidad Católica de la Santísima Concepción, Concepción 4070129, Chile
    Facultad de Ciencias Económicas y Administrativas, Escuela de Administración de Empresas, Universidad Pedagogica y Tecnologica de Colombia, Tunja 150003, Colombia)

Abstract

Despite the growing relevance of subnational development strategies in emerging economies, the literature lacks empirical applications of classical trade models to territorial productive specialization. This study addresses this gap by adapting the Heckscher–Ohlin–Samuelson (HOS) model to identify optimal specialization patterns in intermediate municipalities with asymmetric factor endowments. Using data from 2017 to 2021 for Tunja and Chiquinquirá (Colombia), we estimate capital-to-labor ratios and sectoral factor intensities to detect specialization aligned with local comparative advantages. The results show that Tunja exhibits capital-abundant conditions favoring specialization in sectors such as real estate, construction, and financial services, while Chiquinquirá demonstrates labor-intensive dynamics suitable for tourism and service industries. Methodologically, the study extends the HOS model to subnational scales, offering a robust analytical tool for regional policy formulation. This article contributes to the academic debate by bridging international trade theory and regional development, and it provides empirical evidence to support place-based industrial policies. Our findings emphasize the importance of aligning productive strategies with structural endowments to foster inclusive and sustainable development in emerging territories.

Suggested Citation

  • Hermes Castro-Fajardo & José Luis Niño-Amézquita & Carolina Aguirre-Garzon & Jheisson Abril-Teatin, 2025. "Productive Specialization and Factor Endowments in Emerging Municipalities: A Comparative Analysis of Tunja and Chiquinquirá (2017–2021)," Sustainability, MDPI, vol. 17(16), pages 1-14, August.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:16:p:7300-:d:1723168
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