The Location Choices in the Colombian Manufacturing Industry, 1980-1999

This article analyzes factors which, in light of the classical industrial location theory, account for the location of manufacturing industries in Colombia. The document shows how it is that agglomeration economies represent the paramount determiner which explains the location choices of firms. The study was based upon data stemming from the Yearly Manufacture Survey through the use of 4-digit Standard International Industrial Classification disaggregation for Colombia's 8 top metropolitan areas over the 1990-1999 term. The pattern, estimated by means of data panels, shows the effect exerted by variables such as work-related costs, land prices, taxpaying, income and agglomeration economies upon the location choices of manufacturing industries