Theoretical and empirical assesment of nontraditional exports in Colombia

Abstract

We assess the behaviour of nontraditional exports minus emeralds and gold, including farming activities other than coffee, from a twofold theoretical approach. Firstly, the more aggregate and orthodox approach identifies Supply and Demand drivers; secondly, the microeconomic approach, adds to the mix the costs faced by firms when entering, staying or leaving the market. We also assess the colombian industrial sector, according to its comparative advantage and competitivity, and measure the factors driving exports.