Abstract

MORENO, Ana Isabel  and  POSADA, Héctor Mauricio. Evolution of intra-industry trade between the Colombian regions and the Andean Community, 1990-2004: a comparative analysis. Lect. Econ. [online]. 2007, n.66, pp.83-117. ISSN 0120-2596.

This paper measures and compares the Intraindustry Trade (IIT) levels between Colombia and its main economic regions with the Andean Community (AC). It finds that this trade has been overestimated in previous studies due to geographical and aggregation biases. The nature of IIT is predominantly vertical, where Colombia is found to produce higher quality varieties. As for the regions, the center provinces of each region explain the largest part of the sector composition of the most significant IIT flows with the AC. This result evidences the strong relationship between IIT and regional development, which is found to be more relevant than other factors such as geographical proximity.

Keywords : intraindustry trade; Andean Community; regional economics; international trade.

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