Departmental structure and growth: A Shift-Share reading type
Keywords:
Economic growth, structure of production, regional developmentAbstract
This paper analyzes the economic growth of the departments of Colombia in the period 1975-2000 and in the subperiods 1975-1990 and 1990-2000, emphasizing the impact of the estructure of production on observed performance. For this purpose, various specifications of the Shift-Share methodology are used. Additionally, production is disaggregated into 14 sectors, with two regional specifications, given the sui generis characteristics of the New Departments and of La Guajira department, and also the observed integration of Bogotá and its surrounding department, Cundinamarca. A main conclusion is that agricultural and industrial specialization is not dynamic, but its process of specialization is dynamic. On the other hand, specializations in mining and certain types of services, especially government services, are clearly winners when taking into account its growth performance, though the evidence on endogenous local effects is less clear.
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