Opportunities offered by FTA: Do they contribute to the convergence in development and growth of Colombian regions?

Abstract

The possibility that a TLC contributes to the development generation and in turn growth is magnified with the theories of the free trade. But these should be carried out with some politicians that are adjusted to the conditions of the regions. The paper starts from the concept of regional convergence and/or divergence, which is the basis for this work analysis. The difference between development and growth is well demonstrated. It is also given the studies of different economic schools on this subject. For this research a panel data was done to determine the convergence and/or divergence of Colombian regions during 1980-2002. Finally, strong evidence was found for regional convergence during 1980-2002. But after a more detailed analysis of the conditions that show each one of the regions on the productive vocation and exporting offer the results differ.