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Growth and inclusion trajectories of Colombian functional territories

Author

Listed:
  • Leopoldo Fergusson
  • Tatiana Hiller
  • Ana María Ibáñez
Abstract
We describe the patterns of economic growth and social progress in Colombian “functional territories". Unlike political/administrative divisions that emerge at least partly for historical reasons unrelated to economic interactions, functional territories reflect the patterns of spatial agglomeration and economic interactions in a territory. Using a novel definition of functional territories, our analysis reveals significant fragmentation of economic interactions: close to 66% of municipalities (holding about 20% of the country's population) have no significant links to neighboring areas. A set of comparatively more (but still only partially) integrated and more populous municipalities have stronger links between them. This rural-urban" space holds just around 31% of total population. The rest of Colombians are in urban" or Metropolitan" highly-populated and more integrated clusters. We describe these territories along two dimensions: economic growth or dynamism" and progress in social indicators or inclusion". To do so we propose a simple conceptual framework that organizes the diverse inputs that might help boost these outcomes. Larger and more urbanized agglomerations exhibit visible advantages in these inputs. Moreover, long-run institutional determinants best help differentiate territories. Consistent with this, larger and more urbanized agglomerations have better outcomes, especially when measuring economic activity. Also, more dynamic places tend to be the more inclusive ones, even though recent improvements in dynamism do not correlate with improvements in inclusion.

Suggested Citation

  • Leopoldo Fergusson & Tatiana Hiller & Ana María Ibáñez, 2018. "Growth and inclusion trajectories of Colombian functional territories," Documentos CEDE 16947, Universidad de los Andes, Facultad de Economía, CEDE.
    • Handle: RePEc:col:000089:016947
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    Cited by:

    1. Julio A. Berdegué & Tatiana Hiller & Juan Mauricio Ramírez & Santiago Satizábal & Isidro Soloaga & Juan Soto & Miguel Uribe & Olga Vargas, 2019. "Delineating functional territories from outer space," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 28(1), pages 1-24, December.

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    More about this item

    Keywords

    Economic growth; social progress; functional territories; territorial development.;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • D7 - Microeconomics - - Analysis of Collective Decision-Making

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