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Second Nature Geography and Regional Income Disparities in Colombia.
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.

Autores:
López-Rodríguez, Jesús; Acevedo, María Cecilia.
Palabras clave:
Market Access, New Economic Geography, Spatial Structure of Wages
Archivo:
Año:
2008
Mes:
Julio
Número:
9