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Key research themes
1. How has the Dutch Disease contributed to the acceleration of deindustrialization in Colombia?
This research theme focuses on understanding the extent to which Colombia's deindustrialization is a result of structural and macroeconomic phenomena commonly associated with the Dutch Disease (DD), particularly the impact of the resource boom on the manufacturing sector's decline, exchange rate appreciation, and labor cost dynamics. It is critical as it distinguishes normal secular industrial decline from one aggravated by commodity booms, shaping policy responses.
Key finding: Empirical analysis using a Vector Error Correction (VEC) model supports the hypothesis that Colombia's accelerated deindustrialization between 1970 and 2010 is linked to the Dutch Disease. The Industry Value Added/GDP ratio... Read more
Key finding: The paper highlights a dualistic research agenda in Colombia, where the growth of subsistence and microentrepreneurship is linked to policies reacting to structural economic transformations including deindustrialization. It... Read more
Key finding: Analysis identifies stagnation and decline in aggregate Colombian manufacturing productivity during periods marked by import tariffs and protectionism, indicating that industrial policy and trade reforms significantly... Read more
2. What are the regional dynamics and industrial policy implications of deindustrialization in Colombia?
This theme investigates the spatial heterogeneity of industrial activity and economic development in Colombia, examining interregional competition, complementarity, and policy frameworks. Understanding regional effects and institutional responses provides insight on the uneven impact of deindustrialization and informs tailored industrial policies to foster reinvigoration and integration of industrial capacities across Colombia.
Key finding: The paper finds that Colombian regions show low integration and a predominance of competition rather than complementarities, particularly among the economically dominant Bogotá, West-Central, and Pacific regions. Regional... Read more
Key finding: Examining Colombia's industrial policy design and implementation since the 1950s, the paper documents extensive use of sector-specific and horizontal policies without coherent association to market failures. It notes... Read more
Key finding: Using the 'monkeys and trees' framework, the paper identifies targeted products for Colombia to diversify its industrial production. It assesses institutional bottlenecks hindering the country's ability to jump to more... Read more
3. How does Colombia's high-technology and innovation propagation relate to industrial development and deindustrialization dynamics?
This theme explores the role of high-technology industries (HTI) and innovation diffusion in Colombia’s industrial structure, assessing whether HTI foster meaningful growth and industrial expansion or if their impact is limited. It highlights the structural challenges of integrating advanced sectors into the economy and how these linkages influence the propagation of industrial innovation, relevant for understanding channels to counteract deindustrialization.
Key finding: Using qualitative input-output analysis, the study demonstrates that Colombia’s high-technology industry has a higher degree of innovation propagation compared to Mexico, but both share the characteristic that the HTI mainly... Read more
Key finding: The review underlines that academic and institutional actors focus on accumulative and innovative entrepreneurship related to industrial growth, but a consultancy-driven focus on subsistence entrepreneurship dominates policy... Read more
Key finding: This work analyzes the weak role of industrial design and innovation in Colombia’s manufacturing sector, emphasizing how deficiencies in design practice impede higher value-added industrial development. It identifies... Read more