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Regional Integration in Colombia: A Spatial CGE Application
Journal Title: SCIENZE REGIONALI  
Author/s: Eduardo A. Haddad, Ana M.B. Barufi, Silvio M.A. Costa 
Year:  2011 Issue: Language: English 
Pages:  26 Pg. 5-30 FullText PDF:  763 KB
DOI:  10.3280/SCRE2011-002001
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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: Spatial general equilibrium, transportation cost, new economic geography
Jel Code: R11, R13, R15

Eduardo A. Haddad, Ana M.B. Barufi, Silvio M.A. Costa, in "SCIENZE REGIONALI " 2/2011, pp. 5-30, DOI:10.3280/SCRE2011-002001

   

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