Investment in transport capacity and regulation of regional monopolies in natural gas commodity markets

This paper develops a model of the regulator-regulated firm relationship in a regional natural gas commodity market which can be linked to a competitive market by a pipeline. We characterize normative policies under which the regulator, in addition to setting the level of the capacity of the pipeline, regulates the price of gas, under asymmetric information on the firm’s technology, and may (or may not) operate (two-way) transfers between consumers and the firm. We then focus on capacity and investigate how its level responds to the regulator’s taking account of the firm’s incentive compatibility constraints. The analysis yields some insights on the role that transport capacity investments may play as an instrument to improve the efficiency of geographically isolated markets.

An Empirical Examination of the Determinants of Foreign Direct Investment: A Firm-Level Analysis for the Colombian Economy

We use a large firm level data set to investigate the determinants of foreign direct investment(FDI) in Colombia. We estimate econometric models for the determinants of the probabilitythat a firm receives FDI, as well as for the factors that help to explain the foreign share in afirm’s capital. The results show that firms listed on the stock market, involved in foreign tradeactivities, and operating in sectors with greater capital intensity are more likely to be recipientsof FDI. Also, the probability of a firm receiving FDI is directly related to its size.

Sectoral investment composition, capital services measurement and growth in Colombia

This is mainly a discussant paper on measurement criteria upon sector’s investment and capitalservices and the way these composition and measurement issues come to have an impact ongrowth figures for some major sectors of the Colombian economy. The main focus is on distinctionmatters regarding the measurement of capital stock and capital services in the productionprocess. The availability of appropriate data, widely discussed throughout the document, impliesthat major affirmations are more hypothetic than indicative or descriptive in style. Moststatements are established as a motivation device for studies on sector’s activities with a focus onconsistency with aggregate figures.

Las implicaciones geopolíticas de la construcción del Canal de Nicaragua para el vecindario del Caribe Occidental (2006-2014)

El presente estudio de caso, busca explicar cuáles son las posibles implicaciones e influencia de la construcción del Proyecto del Canal de Nicaragua en la geografía, la economía y la política exterior del Caribe Occidental. Esta investigación defiende que la construcción de este canal influirá en el largo plazo en la geopolítica de esta región, debido a la posibilidad de una competencia hasta hoy inexistente en la región entre dos canales interoceánicos, que puede llegar a afectar la disponibilidad de recursos naturales de la subregión, y asimismo, fortalecer la presencia asiática en América Latina; sin embargo, las consecuencias de este canal no pueden determinarse de manera específica. Para sustentar lo anterior, se realizará una revisión del proceso de construcción del canal de Panamá y del proyecto del de Nicaragua, para establecer un estudio de prospectiva de los escenarios posibles para la región del Caribe Occidental.