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

Rodrigo Pacheco, Raphael P. Fernandes, Inácio Araújo and Eduardo Haddad
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Rodrigo Pacheco: University of São Paulo
Raphael P. Fernandes: University of São Paulo

Chapter Chapter 9 in The Colombian Economy and Its Regional Structural Challenges, 2023, pp 239-271 from Springer

Abstract: 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.

Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:adspcp:978-3-031-22653-3_9

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DOI: 10.1007/978-3-031-22653-3_9

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