Sectorial adjustment costs induced by the Colombian pattern of international trade, 1991-2015

  • Edwin Arbey Hernandez Garcia Director Académico
  • Leonardo Raffo López Profesor Titular

Abstract

The objective of the paper is to analyze the adjustment costs induced by Colombia’s international trade pattern for the period 1991-2015. The methodology focuses on the calculation of marginal intra-industry trade indexes, the adjustment cost index and the use of the graphical tool known as the International Adjustment Cost Space. The data come from the Sistema Armonizado (Harmonized System) by the Departamento Administrativo Nacional de Estadística (National Administrative Department of Statistics), which reports the International Standard Industrial Classification at 4 digits. The main results are: (1) Economic sectors such as Substances and chemical products, plastic and rubber products, metal products, textiles and clothing, and wood products show lower adjustment costs, which is beneficial for Colombia because these are sectors with significant participation in the generation of employment and added value. (2) Trade in these sectors occupies important positions with countries with whom Colombia shares similar relative factor endowments such as Chile, Mexico, Brazil, Peru and Ecuador. Thus, increased intra-industry trade may lead to lower adjustment pressures on domestic factors of production.

Author Biographies

Edwin Arbey Hernandez Garcia, Director Académico

Economista de la Universidad Nacional de Colombia sede Bogotá. Magíster en Economía Aplicada de la Universidad del Valle, Cali. Director Académico de la Unipanamericana sede Valle. Correo electrónico: edwinarbeyh@gmail.com

Leonardo Raffo López, Profesor Titular

Economista y Magíster en Economía Aplicada de la Universidad del Valle, Cali. Profesor Titular e Investigador en el Departamento de Economía de la Universidad del Valle, Cali. Miembro del Grupo de Investigación de Desarrollo Económico, Crecimiento y Mercado Laboral de la Universidad del Valle y del Grupo de Investigación de Conflicto, Aprendizaje y Teoría de Juegos de la misma Universidad. Dirección de correspondencia: calle 13 No 100-00, Universidad del Valle, Sede Meléndez, Edificio 387. Correo electrónico: leonardo.raffo@correounivalle.edu.co

Published
2018-05-31
How to Cite
HERNANDEZ GARCIA, Edwin Arbey; RAFFO LÓPEZ, Leonardo. Sectorial adjustment costs induced by the Colombian pattern of international trade, 1991-2015. Cuadernos de Administración, [S.l.], v. 34, n. 60, may 2018. ISSN 2256-5078. Available at: <http://nexus.univalle.edu.co/index.php/cuadernos_de_administracion/article/view/6089>. Date accessed: 22 july 2018. doi: https://doi.org/10.25100/cdea.v34i60.6089.
Section
Research