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The Interplay of Services Productivity and the Competitiveness of Colombian Exports

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The Colombian Economy and Its Regional Structural Challenges

Part of the book series: Advances in Spatial Science ((ADVSPATIAL))

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Abstract

This chapter focuses on services value-added in exports in Colombia, a country that reveals a historical dependence on natural resource-intensive exports. The analysis is placed in the context of the collapse of the boom or “super-cycle” of commodity prices that has generated significant macroeconomic challenges in recent years. The authors initially apply interregional input–output analysis to measure value-added services in Colombia’s exports. The main results show that the internal geography of services value-added in exports vis-à-vis the location patterns of natural resources in Colombia may add another tension to current trade negotiations. The chapter adds another layer of analytical material by simulating TFP changes in Knowledge-Intensive Business Services (KIBS) and assessing their wider impacts.

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Notes

  1. 1.

    For an analysis of the activities spatial patterns in Colombia, see Chap. 7.

  2. 2.

    Refers to the utilization of services in manufacturing production.

  3. 3.

    KIBS are identified in the sectoral classification of the Interregional Input–Output Matrix and the CEER model by the services: information and communications (sector 46), financial insurance activities (sector 47), and professional, scientific, and technical activities (sector 49). Chapter 5 presents the complete sectoral classification.

  4. 4.

    Chapter 9 provides a detailed analysis of the profile of foreign exports by the Colombian department.

  5. 5.

    Chapter 6, Sect. 6.4, presents the estimation of the price elasticity of export demand for each commodity of the CGE model for Colombia.

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Author information

Authors and Affiliations

  1. University of São Paulo, São Paulo, Brazil

    Inácio F. Araújo & Eduardo A. Haddad

  2. Federal University of São Carlos, São Carlos, Brazil

    Maria Aparecida S. Oliveira

  3. Banco de la República, Cartagena, Colombia

    Diana Ricciulli

Authors
  1. Inácio F. Araújo
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  2. Eduardo A. Haddad
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  3. Maria Aparecida S. Oliveira
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  4. Diana Ricciulli
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Corresponding author

Correspondence to Inácio F. Araújo .

Editor information

Editors and Affiliations

  1. Department of Economics, Universidade de São Paulo, São Paulo, Brazil

    Eduardo A. Haddad

  2. Centro de Estudios Económicos Regionales (CEER), Banco de la República, Cartagena, Colombia

    Jaime Bonet

  3. Regional Economics and Applications Laboratory, University of Illinois Urbana-Champaign, Urbana, IL, USA

    Geoffrey J. D. Hewings

Appendix

Appendix

See Table 15.6, Figs. 15.10 and 15.11

Table 15.6 Spatial patterns of non-services and services value-added embodied in exports of goods and services: Colombia, 2015
Full size table
Fig. 15.10
A horizontal bar graph represents the K I B S value-added for non-services final demand in O E C D and non-O E C D countries. Hong Kong has highest value in non-O E C D economies and Israel has the highest value in O E C D countries.

Source Authors’ own from the 2021 edition of OECD Inter-Country Input–Output (ICIO) Tables for 2018

Domestic KIBS value-added embodied in non-services final demand. Note KIBS: Telecommunications (D61), IT and other information services (D62T63), financial and insurance activities (D64T66), and professional, scientific, and technical activities (D69T75). Non-services sectors: agriculture, mining, and manufacturing.

Full size image
Fig. 15.11
A horizontal bar graph represents the domestic K I B S value-added in services final demand in O E C D and non-O E C D countries. Hong Kong and Australia have the highest values with 10.3 % and 11.9 %, respectively.

Source Authors’ own from the 2021 edition of OECD Inter-Country Input–Output (ICIO) Tables for 2018

Domestic KIBS value-added embodied in services final demand. Note KIBS: Telecommunications (D61), IT and other information services (D62T63), financial and insurance activities (D64T66), and professional, scientific, and technical activities (D69T75).

Full size image

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Araújo, I.F., Haddad, E.A., Oliveira, M.A.S., Ricciulli, D. (2023). The Interplay of Services Productivity and the Competitiveness of Colombian Exports. In: Haddad, E.A., Bonet, J., Hewings, G.J.D. (eds) The Colombian Economy and Its Regional Structural Challenges. Advances in Spatial Science. Springer, Cham. https://doi.org/10.1007/978-3-031-22653-3_15

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