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Trade in Value-Added: Does MFN Status Matter for Colombian Regions?

In: The Colombian Economy and Its Regional Structural Challenges

Author

Listed:
  • Rodrigo Pacheco

    (University of São Paulo)

  • Raphael P. Fernandes

    (University of São Paulo)

  • Inácio F. Araújo

    (University of São Paulo)

  • Eduardo A. Haddad

    (University of São Paulo)

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.

Suggested Citation

  • Rodrigo Pacheco & Raphael P. Fernandes & Inácio F. Araújo & Eduardo A. Haddad, 2023. "Trade in Value-Added: Does MFN Status Matter for Colombian Regions?," Advances in Spatial Science, in: Eduardo A. Haddad & Jaime Bonet & Geoffrey J. D. Hewings (ed.), The Colombian Economy and Its Regional Structural Challenges, chapter 0, pages 239-271, Springer.
    • Handle: RePEc:spr:adspcp:978-3-031-22653-3_9
    DOI: 10.1007/978-3-031-22653-3_9
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    References listed on IDEAS

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    1. Eduardo A. Haddad & Fatima Ezzahra Mengoub & Vinicius A. Vale, 2020. "Water content in trade: a regional analysis for Morocco," Economic Systems Research, Taylor & Francis Journals, vol. 32(4), pages 565-584, October.
    2. Fernando Salgueiro Perobelli & Eduardo Amaral Haddad & Jaime Bonet Moron & Geoffrey Hewings, 2010. "Structural Interdependence Among Colombian Departments," Economic Systems Research, Taylor & Francis Journals, vol. 22(3), pages 279-300.
    3. Philip McCann, 2007. "Technology, Information and the Geography of Global and Regional Trade," Advances in Spatial Science, in: Russel Cooper & Kieran Donaghy & Geoffrey Hewings (ed.), Globalization and Regional Economic Modeling, chapter 2, pages 15-34, Springer.
    4. E.A. Haddad & J. Bonet & G.J.D. Hewings & F.S. Perobelli, 2009. "Spatial aspects of trade liberalization in Colombia: A general equilibrium approach," Papers in Regional Science, Wiley Blackwell, vol. 88(4), pages 699-732, November.
    5. Eduardo A. Haddad & Geoffrey J.D. Hewings, 2009. "Handling Market Imperfections In A Spatial Economy: Some Experimental Results Ii," Revista ESPE - Ensayos sobre Política Económica, Banco de la Republica de Colombia, vol. 27(58), pages 140-193, August.
    6. repec:wiw:wiwrsa:ersa13p182 is not listed on IDEAS
    7. Darla K. Munroe & Geoffrey J. D. Hewings & Dong Guo, 2007. "The Role of Intraindustry Trade in Interregional Trade in the Midwest of the US," Advances in Spatial Science, in: Russel Cooper & Kieran Donaghy & Geoffrey Hewings (ed.), Globalization and Regional Economic Modeling, chapter 6, pages 87-105, Springer.
    8. Luis Armando Galvis & Adolfo Meisel, 2013. "Regional Inequalities and Regional Policies in Colombia: The Experience of the Last Two Decades," Advances in Spatial Science, in: Juan R. Cuadrado-Roura & Patricio Aroca (ed.), Regional Problems and Policies in Latin America, edition 127, chapter 0, pages 197-223, Springer.
    9. Gilles Duranton, 2016. "Agglomeration Effects In Colombia," Journal of Regional Science, Wiley Blackwell, vol. 56(2), pages 210-238, March.
    10. Duranton, Gilles, 2015. "Roads and trade in Colombia," Economics of Transportation, Elsevier, vol. 4(1), pages 16-36.
    11. Ligia Alba Melo-Becerra & Ligia Marcela Parrado-Galvis & Jorge Enrique Ramos-Forero & Héctor Manuel Zarate-Solano, 2020. "Effects of Booms and Oil Crisis on Colombian Economy: A Time-Varying Vector Autoregressive Approach," Revista de Economía del Rosario, Universidad del Rosario, vol. 23(1), pages 31-63, June.
    12. Johnson, Robert C. & Noguera, Guillermo, 2012. "Accounting for intermediates: Production sharing and trade in value added," Journal of International Economics, Elsevier, vol. 86(2), pages 224-236.
    13. Michael Sonis & Geoffrey J. D. Hewings & Yasuhide Okuyama, 2002. "Vertical Specialization and Interregional Trade: Hierarchy of Spatial Production Cycles and Feedback Loop Analysis in the Midwest Economy," Advances in Spatial Science, in: Geoffrey J. D. Hewings & Michael Sonis & David Boyce (ed.), Trade, Networks and Hierarchies, chapter 19, pages 347-364, Springer.
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