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Abstract

A combined CGE-transportation model is used to assess the likely impact of trade liberalization on the Colombian agricultural sector at the regional/spatial level. The methodology allows for an explicit treatment of the exact location of economic activity, providing support for regionalized policy design. Results indicate that regional impacts in terms of harvested areas, production levels, and value of production are not negligible. Furthermore, some changes are of a magnitude enough to modify producing regions rankings. The diversity of outcomes at the regional level highlights the relevance of geographically detailed results for policy design.

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