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Second Nature Geography and Regional Income Disparities in Colombia

  • 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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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
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Handle: RePEc:col:000089:004983
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