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Trade Policy and Export Diversification: What Should Colombia Expect from the FTA with the United States

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  • Volpe Martincus, Christian
  • Gómez, Sandra Milena

Abstract

According to the economic theory and recent empirical evidence, improved market access through trade arrangements is likely to favor export diversification. In this paper, we assess whether this has been the case of Colombian exports to the United States and whether an FTA with the United States would help Colombia to diversify their exports. We find that lower tariffs have indeed favored exports of new products from Colombia. Predictions suggest that the FTA is likely to induce further diversification, but up to a certain point.

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  • Volpe Martincus, Christian & Gómez, Sandra Milena, 2009. "Trade Policy and Export Diversification: What Should Colombia Expect from the FTA with the United States," IDB Publications (Working Papers) 2498, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:2498
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    2. Ricardo Arguello, 2017. "Trade diversification in Colombia, 1991-2011," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, vol. 36(71), pages 345-378, July.

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