Second Nature Geography and Regional Income Disparities in Colombia

Jesus Lopez-Rodriguez and María Cecilia Acevedo

No 4983, Documentos CEDE from Universidad de los Andes, Facultad de Economía, CEDE

Abstract: In this paper, we derive and estimate a New Economic Geography model for the Colombian departments.2 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.

Keywords: New Economic Geography; Spatial Structure of Wages; Market Access (search for similar items in EconPapers)
JEL-codes: F12 F23 R11 R12 R13 R14 (search for similar items in EconPapers)
Pages: 28
Date: 2008-07-03
New Economics Papers: this item is included in nep-dev and nep-geo
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Persistent link: https://EconPapers.repec.org/RePEc:col:000089:004983

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