EconPapers    
Economics at your fingertips  
 

FDI asymmetries in emerging economies:the case of Colombia

José Mora and Celso Costa ()
Additional contact information
Celso Costa: Faculty of Economics and Management, Pontificia Universidad Javeriana Cali

No 38, Working Papers from Faculty of Economics and Management, Pontificia Universidad Javeriana Cali

Abstract: We build a DSGE model to study the asymmetries of FDI shocks in an economy like Colombia. Besides nominal wage and price rigidities, we use the fact that Colombia has two productive and differentiated regions, Bogota that produces more than 25% of Colombia GDP (DANE, 2016) and the rest of the country, Ricardian and non-Ricardian agents, habit formation, capital adjustment costs, and modeled an entire foreign sector. Empirical results show that even when in the long run results are not very different in terms of real output, the short run effects are asymmetric implying that a shock to FDI in the rest of the country might cause important microeconomic adjustments that could improve the distribution of income throughout the country. The version here presented corresponds to the updated study.

Keywords: Asymmetries; DSGE models; foreign direct investment (search for similar items in EconPapers)
JEL-codes: F21 E17 E30 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge, nep-int and nep-mac
Date: 2018-12
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
ftp://repec.javerianacali.edu.co/WorkingPapers/ddtn382018.pdf First version, 2017 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ddt:wpaper:38

Access Statistics for this paper

More papers in Working Papers from Faculty of Economics and Management, Pontificia Universidad Javeriana Cali
Bibliographic data for series maintained by Alexandra Simpson Silva ().

 
Page updated 2019-03-15
Handle: RePEc:ddt:wpaper:38