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Deindustrialization in Colombia: Quantitative Analysis of Determinants   Sergio Clavijo,Alejandro Vera and Alejandro Fandino

Deindustrialization in Colombia: Quantitative Analysis of Determinants

56 страниц. 2014 год.
LAP Lambert Academic Publishing
This document looks at the deindustrialization process in Colombia during 1965-2012, attempting to distinguish between “secular movements” (normal) from factors that have accelerated its process as a result of the Dutch Disease. This is a case of accelerated deindustrialization, where the Industry Value Added/GDP ratio has fallen from almost 25% during the mid-seventies to 20-22% in the eighties and now reaches a mere 12%. This deindustrialization has been linked to: i) structural difficulties in the provision of basic services (energy, telecommunications, roads), and ii) the effect springing from the energy-mining boom, accompanied by a costly labor force and a rampant appreciation of the exchange rate, thus giving support to the DD hypothesis. On the econometric front, the VEC model supports the DD hypothesis for the period 1970-2010, as compared to the alternate hypothesis of “secular” deindustrialization. This is usually explained by the expansion of the services sector (due to...
 
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