Abstract
This chapter reports on the results of an application with the interregional input–output matrix for Colombia. For each flow originating in one of the Colombian departments, the authors estimate measures of the trade in value added. The measures of trade in value-added reveal different hierarchies of interregional and international trade integration, with implications for regional inequality in the country. The parsimonious approach based on “hypothetical extraction” serves as the methodological anchor for the study. The chapter argues that policymakers should consider interregional interactions for a better understanding of how the regional economies are affected, both in the international and domestic markets, since for the smaller economies, the performance of the more developed regions may play a crucial role.
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Notes
- 1.
- 2.
On the “Colombian Ostrich”, please see Haddad et al. (2009).
- 3.
The “subpartida arancelaria” is the import and export classification system used in the DIMPE at a basic 10-digit level. It is used to identify products/commodities.
- 4.
Nomenclatura das classificações DANE in: https://www.dane.gov.co/index.php/sistema-estadistico-nacional-sen/normas-y-estandares/nomenclaturas-y-clasificaciones.
- 5.
- 6.
Duranton (2016) explores agglomeration benefits in Colombian cities.
- 7.
Duranton (2015) provides insight into how transport infrastructure affects trade and the organization of economic activity. The author shows that road distance between cities is a significant impediment to domestic trade in Colombia.
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Pacheco, R., Fernandes, R.P., Araújo, I.F., Haddad, E.A. (2023). Trade in Value-Added: Does MFN Status Matter for Colombian Regions?. 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_9
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