Competitiveness and Trade Policy Problems in Agricultural Exports: The Case of Colombia. Doctoral Thesis Project

Este estudio explora el estado actual y el potencial competitivo de las exportaciones agrícolas colombianas a los mercados de Estados Unidos y la Unión Eurpea. Los mercados de estos paises industrializados se constituyen en los más importantes para Colombia, pero al mismo tiempo tienen varias restricciones en el sector agrícola. Este estudio mostrará que la competitividad no es solamente una función de los impedimentos locales o internacionales tales como la pobreza institucional, la baja capacidad tecnológica, la disponibilidad de capital, capital humano y mano de obra, sino también de impedimentos externos como el acceso a los mercados. Por lo tanto, éste es un importante objetivo del presente estudio con el objeto de proyectar posibles escenarios para el comercio colombiano, a fin de investigar la eliminación de estas restricciones. En la parte empírica se enfatizará en los impactos de las restricciones externas en el sentido de un estudio econométrico, sin embargo, la influencia de las restricciones internas será discutida como tal.

Agricultural sector and competition in Colombia

In this chapter we provide a summary description of Colombian Competition Policy with an emphasis on the agricultural sector. Key developments and recent changes in institutional arrangements affecting competition policy, as it applies to the agricultural sector, are highlighted. Illustrative case studies are depicted to show the richness and complexity of policy developments and enforcement. Some general conclusions are drawn from this examination.

Poverty impacts of agricultural policy adjustments in an opening economy: the case of Colombia

We aim to contribute to the assessment of poverty impacts on the rural sector arising from agricultural policy adjustments in Colombia. For this we use an agriculture specialized static CGE model, jointly (sequentially) with a microsimulation model that allows for effective job relocation. Results indicate that the sectoral impact of the program implemented tends to be small and has considerable variability across crops. They also show that the highest impacts come from the irrigation and land improvements component of the program. Lastly, although it reduces poverty, poverty impacts are small and tend to concentrate in rural households toward the middle of the income distribution ladder.

An analysis of the relationship between wages in the public and private sector in colombia : a panel data approach

This document examines the time-series properties of the wage differentials that arise between the public and private sector in Colombia during the sample period 1984 to 2005. We Find conflicting results in unit-root and stationary tests when looking at wage differentials at an aggregate level (such as for men, women or both). However, when we analyse wage differentials at higher levels of disaggregation, treat them jointly as a panel of data, and allow for the presence of potential cross section dependence, there is more supportive evidence for the view that wage differentials are stationary. This implies that although wage differentials do exist, they have not been consistently increasing (or decreasing) over time.

Business cycle asymmetries: Loss aversion, sticky prices, and wages

In this chapter, the Smets-Wouters (2003) New Kenesian model is reformulated by introducing the loss aversion utility function developed in chapter two. The purpose of this is to understand how asymmetric real business cycles are linked to asymmetric behavior of agents in a price and wage rigidities set up. The simulations of the model reveal not only that the loss aversion in consumption and leisure is a good mechanism channel for explaining business cycle asymmetries, but also is a good mechanism channel for explaining asymmetric adjustment of prices and wages. Therefore the existence of asymmetries in Phillips Curve. Moreover, loss aversion makes downward rigidities in prices and wages stronger and also reproduces a more severe and persistent fall of the employment. All in all, this model generates asymmetrical real business cycles, asymmetric price and wage adjustment as well as hysteresis.

Conflict, wages, and multiple equilibria

Firms’ compensation practices affect the protection of investors’ interests and the degree of economic inequality by changing the stakes of engaging in appropriation activities versus respecting the status quo. We use a general equilibrium model where workers can either work peacefully or join a guerrilla movement that expropriates entrepreneurs. If workers are peaceful, they receive a competitive wage. If they join a guerrilla movement, they receive a share of the appropriated wealth, which depends positively on the number of guerrilla members. In this framework, we find one low-income, low-wage equilibrium with guerrilla activity and one peaceful, high-income, high-wage equilibrium. The peaceful equilibrium can be reached through redistribution policies, which can be implemented at the firm level. In essence, through their compensation policies entrepreneurs, not the state might be able to protect their assets against expropriation and simultaneously control the internal principal-agent problem.