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The Great Depression in Colombia: A Stimulus to Industrialization, 1930-1953

Author

Listed:
  • Juliana Jaramillo-Echeverri

    () (Banco de la República de Colombia)

  • Adolfo Meisel-Roca

    () (Banco de la República de Colombia)

  • María Teresa Ramírez-Giraldo

    () (Banco de la República de Colombia)

Abstract

This paper analyzes the role of the Great Depression and protectionism in the Colombian industrialization of the early 1930s as well as the role of other determinants in the rapid industrialization that took place during the period 1934-1953. We conclude that the market pushed industrialization by reducing costs, generating economies of scale, learning by doing, giving place to agglomeration economies, and rapid technological change. This paper also examines the structure of the Colombian manufacturing sector in 1945, which was the result of the deep socio-economic transformations that took place in the previous decade. The results indicate that the industrialization process was uneven across regions, and that it was spatially concentrated. Estimations of a production function for industry in 1945 show that there were important differences in factor elasticities and productivities among sectors and regions, which led to different regional patterns of industrialization. In addition, the results indicate that labor productivity in 1945 was positively and significantly related to education and capital, whereas it was negatively related to the unskilled workers and the age of the firms.

Suggested Citation

  • Juliana Jaramillo-Echeverri & Adolfo Meisel-Roca & María Teresa Ramírez-Giraldo, 2015. "The Great Depression in Colombia: A Stimulus to Industrialization, 1930-1953," Borradores de Economia 892, Banco de la Republica de Colombia.
  • Handle: RePEc:bdr:borrec:892
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    References listed on IDEAS

    as
    1. Ana María Iregui B. & Luis Fernando Melo V. & María Teresa Ramírez G., 2007. "Productividad Regional Y Sectorial En Colombia: Un Análisis Utilizando Datos De Panel," Revista ESPE - Ensayos sobre Política Económica, Banco de la Republica de Colombia, vol. 25(53), pages 18-65, January.
    2. Salomón Kalmanovitz, 1983. "Los orígenes de la industrialización en Colombia, 1890-1929," Revista Cuadernos de Economía, Universidad Nacional de Colombia -FCE - CID, June.
    3. Eslava, Marcela & Haltiwanger, John & Kugler, Adriana & Kugler, Maurice, 2004. "The effects of structural reforms on productivity and profitability enhancing reallocation: evidence from Colombia," Journal of Development Economics, Elsevier, vol. 75(2), pages 333-371, December.
    4. Juan José Echavarría & Mauricio Villamizar & colaboración Juanita González, 2006. "El Proceso Colombiano de Desindustrialización," Borradores de Economia 361, Banco de la Republica de Colombia.
    5. Bertola, Luis & Ocampo, Jose Antonio, 2012. "The Economic Development of Latin America since Independence," OUP Catalogue, Oxford University Press, number 9780199662142.
    6. repec:bdr:bdrlib:1990-07 is not listed on IDEAS
    7. Eslava, Marcela & Haltiwanger, John & Kugler, Adriana & Kugler, Maurice, 2004. "The effects of structural reforms on productivity and profitabality enhancing reallocation: evidence from Colombia," Discussion Paper Series In Economics And Econometrics 0408, Economics Division, School of Social Sciences, University of Southampton.
    8. Twomey, Michael J., 1983. "The 1930s Depression in Latin America: A macro analysis," Explorations in Economic History, Elsevier, vol. 20(3), pages 221-247, July.
    9. Leonardo Villar & Pilar Esguerra, 2005. "El Comercio Exterior Colombiano En El Siglo Xx," BORRADORES DE ECONOMIA 002468, BANCO DE LA REPÚBLICA.
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    More about this item

    Keywords

    Industrialization; Great Collapse; market-led industry; Colombia.;

    JEL classification:

    • N1 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations
    • N66 - Economic History - - Manufacturing and Construction - - - Latin America; Caribbean
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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