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Second Nature Geography and Regional Income Disparities in Colombia

Listed author(s):
  • Jesús López-Rodríguez

    ()

  • María Cecilia Acevedo

In this paper, we derive and estimate a New Economic Geography model for the Colombian departments.2 We first derive an econometric specification relating wages to a distance weighted sum of the volumes of economic activities of the surrounding locations. Them, we test our econometric specification with data for Colombian departments in the period 1975-2000. The empirical results confirm the theoretical predictions of our model, showing that second nature geography factors (access to consumer markets) are a key variable in explaining the spatial distribution of wages in Colombia.

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File URL: http://economia.uniandes.edu.co/publicaciones/dcede2008-09.pdf
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Paper provided by UNIVERSIDAD DE LOS ANDES-CEDE in its series DOCUMENTOS CEDE with number 004983.

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Length: 28
Date of creation: 03 Jul 2008
Handle: RePEc:col:000089:004983
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  1. repec:spo:wpecon:info:hdl:2441/10191 is not listed on IDEAS
  2. Michael Spence, 1976. "Product Selection, Fixed Costs, and Monopolistic Competition," Review of Economic Studies, Oxford University Press, vol. 43(2), pages 217-235.
  3. Robert E. Hall & Charles I. Jones, 1999. "Why Do Some Countries Produce So Much More Output per Worker than Others?," NBER Working Papers 6564, National Bureau of Economic Research, Inc.
  4. H. Hanson, Gordon, 2005. "Market potential, increasing returns and geographic concentration," Journal of International Economics, Elsevier, vol. 67(1), pages 1-24, September.
  5. De Long, J Bradford & Shleifer, Andrei, 1993. "Princes and Merchants: European City Growth before the Industrial Revolution," Journal of Law and Economics, University of Chicago Press, vol. 36(2), pages 671-702, October.
  6. Head, Keith & Mayer, Thierry, 2006. "Regional wage and employment responses to market potential in the EU," Regional Science and Urban Economics, Elsevier, vol. 36(5), pages 573-594, September.
  7. Jaime Bonet & Adolfo Meisel, 1999. "La convergencia regional en Colombia: una visión de largo plazo 1926-1995," COYUNTURA ECONÓMICA, FEDESARROLLO, March.
  8. J.Peter Neary, 2001. "Of Hype and Hyperbolas: Introducing the New Economic Geography," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 536-561, June.
  9. Robert E. Hall & Charles I. Jones, 1999. "Why do Some Countries Produce So Much More Output Per Worker than Others?," The Quarterly Journal of Economics, Oxford University Press, vol. 114(1), pages 83-116.
  10. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
  11. Ricardo Rocha & Alejandro Vivas, 1998. "Crecimiento regional en Colombia: ¿Persiste la desigualdad?," REVISTA DE ECONOMÍA DEL ROSARIO, UNIVERSIDAD DEL ROSARIO, January.
  12. Adolfo Meisel Roca & Julio Romero P, 2007. "Igualdad de oportunidades para todas las regiones," DOCUMENTOS DE TRABAJO SOBRE ECONOMÍA REGIONAL 002801, BANCO DE LA REPÚBLICA - ECONOMÍA REGIONAL.
  13. Head, Keith & Mayer, Thierry, 2004. "The empirics of agglomeration and trade," Handbook of Regional and Urban Economics,in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 59, pages 2609-2669 Elsevier.
  14. Armando Pires, 2006. "Estimating Krugman’s Economic Geography Model for the Spanish Regions," Spanish Economic Review, Springer;Spanish Economic Association, vol. 8(2), pages 83-112, June.
  15. Boris Salazar Trujillo, 1994. "Fábula y Trama en el Relato de la Convergencia," DOCUMENTOS DE TRABAJO-CIDSE 004009, UNIVERSIDAD DEL VALLE - CIDSE.
  16. Adolfo Meisel, 1993. "¿Polarización o convergancia? A propósito de Cárdenas, Pontón y Trujillo," COYUNTURA ECONÓMICA, FEDESARROLLO, vol. 23(2), pages 153-160, July.
  17. Richard Baldwin & Rikard Forslid & Philippe Martin & Gianmarco Ottaviano & Frederic Robert-Nicoud, 2005. "Economic Geography and Public Policy," Economics Books, Princeton University Press, edition 1, number 7524, March.
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