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Title:Politics, policies and the dynamics of aggregate productivity in Colombia PDF Logo
Authors:Eslava, Marcela
Meléndez, Marcela
Issue Date:2009
Series/Report no.:Working paper // Inter-American Development Bank, Research Department 687
Abstract:This paper describes private actors' involvement in Colombia's policymaking process. While more transparent and formal channels are used to discuss horizontal policies, they are also less effective. The adoption of targeted policies, however, follows a faster track and depends more on political power than on those policies' potential as engines for productivity growth. Data targeted policies and political characteristics across sector-region units are used to further characterize the different groups' weight in policymaking, and the effect of the implied unbalance on aggregate productivity. Electoral weight and being represented by business groups and associations are found to be important determinants of the policy benefits received by a sector in a region, especially when activities are located in regions affected by armed conflict. It is also found that the resulting imbalance of policies damages aggregate productivity.
Subjects:Productivity
political economy
interest groups
targeted policies
JEL:O43
O25
P16
Document Type:Working Paper
Appears in Collections:Research Department Working Papers, Inter-American Development Bank

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