Second nature geography and regional income disparities in Colombia

In this paper, we derive and estimate a New Economic Geography model for the Colombian departments. 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 w...

Full description

Autores:
López-Rodríguez, Jesús
Acevedo Villalobos, María Cecilia
Tipo de recurso:
Work document
Fecha de publicación:
2008
Institución:
Universidad de los Andes
Repositorio:
Séneca: repositorio Uniandes
Idioma:
eng
OAI Identifier:
oai:repositorio.uniandes.edu.co:1992/8061
Acceso en línea:
http://hdl.handle.net/1992/8061
Palabra clave:
New economic geography
Spatial structure of wages
Market access
Geografía económica - Colombia
Salarios - Aspectos económicos - Colombia
Mercado laboral - Colombia
R11, R12, R13, R14, F12, F23
Rights
openAccess
License
http://creativecommons.org/licenses/by-nc-nd/4.0/
Description
Summary:In this paper, we derive and estimate a New Economic Geography model for the Colombian departments. 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.