Regional Integration in Colombia: A Spatial CGE Application

Eduardo Haddad, Ana Maria Barufi and Silvio Costa

SCIENZE REGIONALI, 2011, vol. 2011/2, issue 2, 5-30

Abstract: We explore an alternative approach to bridge the gap between New Economic Geography (NEG) theory and practice. We depart from Haddad and Hewings (2005), which offers some preliminary steps in the marriage of some of the theoretical foundations of NEG with spatial computable general equilibrium (CGE) models. It is argued that such approach should not be neglected as a potential modeling strategy to be pursued in order to reinforce policy relevance of NEG-based models. We apply the proposed methodology to look at the ex ante potential spatial implications of reductions in transportation costs within the Colombian economy. The results are shown to be in line with NEG models, reproducing empirical regularities evidenced from econometric estimates.

Keywords: Equilibrio generale; costi di trasporto; nuova geografia economica (search for similar items in EconPapers)
JEL-codes: R11 R13 R15 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (4)

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