This book examines regional structural challenges on Colombia’s path to sustainable social cohesion and regionally inclusive growth. These challenges can be divided into three main groups: (i) those that focus on competitiveness and the supply side, (ii) those that arise from critical business cycle issues on the demand side, and (iii) those concerning environmental sustainability, employment and social inclusion.
The contributions, written by experts on Latin American economics and regional science, apply quantitative simulations based on a unified general equilibrium framework and address a wide range of topics, including: Colombia’s competitive integration in global markets, human capital profiles, regional economic disparities and public and private mechanisms of interregional income transfer. The challenges entailed by such high-profile and long-term issues as productivity growth and climate change are also analyzed.
In addition, the book positions Colombia’s experiences in an international comparative context. It argues that many other Latin American countries face similar challenges and provide evidence to substantiate this claim. By doing so, it offers valuable policy lessons for Latin American countries with similar difficulties.
Author(s): Eduardo A. Haddad, Jaime Bonet, Geoffrey J. D. Hewings
Series: Advances in Spatial Science
Publisher: Springer
Year: 2023
Language: English
Pages: 475
Preface
Acknowledgments
Contents
Editors and Contributors
1 Introduction and Overview
1.1 Background
1.2 Statement of Aims
1.3 What Does This Book Do Differently?
1.4 What Does This Book Leave Aside and Why?
1.5 Structure of the Book
1.6 The Road Ahead
References
Part I Regional Setting
2 Is There a Case for Regional Policies in Colombia?
2.1 Introduction
2.2 Literature Review
2.2.1 Fiscal Decentralization
2.2.2 Administrative Decentralization
2.2.3 Political Decentralization
2.3 Change in Regional Policy
2.4 Final Considerations
References
3 Income Inequalities in Colombia
3.1 Introduction
3.2 Stylized Facts of the Inequalities in Colombia
3.2.1 Changes in Inequalities in the 2010s
3.2.2 Factors Associated with Changes in Inequalities
3.3 Data and Methodology
3.4 Decomposition of Changes in Income Distribution
3.4.1 Components Associated with the National Variation in Inequalities, 2010–2019
3.4.2 Changes in Regional Income Inequalities in the 2010s
3.5 Conclusions and Discussion
Appendix
References
4 Regional Convergence in Colombia in the Twenty-First Century
4.1 Introduction
4.2 The Colombian Economy During the 21st Century
4.3 International and National Literature
4.4 Convergence Estimation and Its Decomposition
4.4.1 Decomposition
4.4.2 Spatial Dependence
4.5 Data and Methodology
4.6 Results
4.6.1 Beta Convergence Timing
4.6.2 Beta Convergence Decomposition
4.6.3 Spatial Dependence
4.6.4 Convergence on Other Indicators
4.7 Final Considerations
Appendix
References
Part II Modelling Framework
5 The Interregional Input–Output System for Colombia
5.1 Introduction
5.2 Interregional Input–Output Matrix for Colombia
5.2.1 Initial Data Treatment
5.2.2 Estimation of the Interregional Trade Matrices
5.3 Regionalization Procedure
5.4 Structural Analysis
5.4.1 Output Composition
5.4.2 Multiplier Analysis
5.4.3 Interregional Linkages
5.5 Final Considerations
Appendix 1: List of Regions
Appendix 2: List of sectors
Appendix 3: Sectoral GRP Data
Appendix 4: Average Travel Time (in Minutes)
Appendix 5A: Interregional Trade in Colombia, 2015 (in COP Billions)
Appendix 5B: Interregional Trade in Colombia: Purchases Shares, 2015
Appendix 5C: Interregional Trade in Colombia: Sales Shares, 2015
References
6 The Interregional Computable General Equilibrium Model for Colombia
6.1 Introduction
6.2 The Johansen Approach
6.3 Specification of the CEER Model
6.4 Calibration
6.5 Final Considerations
References
Part III Structural Analysis
7 Revisiting the Structural Interdependence Among Colombian Departments
7.1 Introduction
7.2 The Structure of Colombian Regional and International Trade
7.3 Data and Methodology
7.3.1 Data
7.3.2 Methodology
7.4 Results
7.5 Final Considerations
References
8 Economic Base and Regional Specialization in Colombia: A Note on Input–Output Linkages
8.1 Introduction
8.2 Economic Base and Regional Specialization
8.3 Data and Methodology
8.3.1 Economic-Base Output Multiplier
8.3.2 Partition Analysis of Indirect Production Generation by the Economic Base
8.3.3 Econometric Model
8.4 Economic Base of the Colombian Departments
8.5 Results
8.5.1 Interregional Multiplier Effects of the Economic Base
8.5.2 Miyazawa’s Analysis
8.5.3 Results of the Econometric Model
8.6 Final Considerations
References
9 Trade in Value-Added: Does MFN Status Matter for Colombian Regions?
9.1 Introduction
9.2 International and Domestic Trade in Colombia
9.2.1 Colombian Participation in International Trade
9.2.2 International and Interregional Trade in Colombia by Department
9.3 Data and Methodology
9.3.1 Data
9.3.2 Hierarchy of Spatial Production and Feedback Analysis
9.4 Measurement of Regional Value-Added in Interregional and International Trade Flows
9.5 Results
9.5.1 Concentration and Structural Interdependence Among Colombian Departments
9.6 Final Considerations
Appendix 1
Appendix 2
References
10 Chaining Juan Valdez: Linkages in the Colombian Coffee Production
10.1 Introduction
10.2 Coffee Production in Colombia
10.2.1 Spatial Characteristics of the Coffee Production in Colombia
10.2.2 Coffee Productive Structure in Colombia
10.3 Data and Methodology: The Hypothetical Extraction Method and Data Source
10.4 Results
10.4.1 What if the Coffee-Growing and Coffee-Processing Sectors Did not Exist?
10.4.2 What is the Domestic Value-Added Content of Colombian Coffee Exports?
10.5 Final Considerations
References
11 Urban Travelers Go to the Beach: Regional Effects of Domestic Tourism in Colombia
11.1 Introduction
11.2 A Brief Approach to Tourism Analysis in Colombia
11.2.1 Geography of Domestic Tourism Expenditures in Colombia
11.2.2 Systemic Effects of Tourism: Potential for Interregional Transfers
11.3 Literature Review
11.4 Data and Methodology
11.4.1 Expenditure Patterns
11.5 Results
11.5.1 National Effects
11.5.2 Regional Effects: Output and Employment
11.6 Final Considerations
References
12 Regional Differences in the Economic Impact of Lockdown Measures to Prevent the Spread of COVID-19: A Case Study for Colombia
12.1 Introduction
12.2 Data and Methodology
12.3 A First View of the Pre-lockdown Regional Economies
12.4 Results
12.4.1 Adjustment Factor F
12.4.2 Workers in Isolation
12.4.3 Economic Impact
12.5 Final Considerations
Appendix
References
Part IV Structural Development Issues
13 Boiling Hot! Economy-Wide Impacts of Climate Change on Colombian Coffee Yields
13.1 Climate Change and Global Warming
13.2 Colombian Coffee Industry Brief History
13.2.1 Early History (1830–1958)
13.2.2 The Present Era (2015)
13.3 Underlying Harvesting Mechanisms
13.4 Climate Shock: Results and Analysis
13.5 Final Remarks
References
14 The Geography of Manufacturing Productivity Shocks in Colombia
14.1 Introduction
14.2 Literature Review
14.3 Geography of Colombian Manufacturing Activity
14.4 Data and Methodology
14.5 Results
14.5.1 Economic Effects of Productivity Changes
14.5.2 Regional Equity-Efficiency Trade-Off
14.5.3 Regional Competition Versus Complementarity
14.5.4 Supply-Side Key Sector Analysis
14.6 Final Considerations
References
15 The Interplay of Services Productivity and the Competitiveness of Colombian Exports
15.1 Introduction
15.2 Do Service Sectors Matter to Exports?
15.3 Data and Methodology
15.4 Results
15.4.1 Regional Impacts
15.4.2 Interregional Linkages and the Propagation of KIBS Productivity Shocks
15.4.3 Impacts on Foreign Exports
15.4.4 Sensitivity Analysis
15.5 Conclusions
Appendix
References
16 Impact Assessment of Interregional Transfers Scenarios in the Colombian Economy
16.1 Introduction
16.2 Regional Inequalities and Subnational Transfers
16.2.1 Colombian Institutional Details
16.3 Specification of the CEER Model
16.3.1 Modeling the Fiscal Transfer Scenarios
16.4 Fiscal Scenarios
16.5 Simulation Results
16.5.1 Effects of Governmental Transfer Redistribution
16.5.2 Spillover Effects on Regional Growth
16.5.3 Effects on Regional Inequality
16.5.4 Effects of Government Transfer Redistribution Accompanied by Productivity Gains
16.6 Final Considerations
Appendix—Scenario and Detailed Shocks
References
17 Royalties and Regional Disparities
17.1 Introduction
17.2 The Sistema General De Regalías (SGR)
17.3 Case Study
17.4 Modeling the Royalties Revenues and Expenditures
17.5 Results
17.6 Final Considerations
References
