External Sector and Growth in Colombia, 1986-2016

This article estimates income and price elasticities in foreign trade their practical applicationin Thirlwall's multilateral economic growth model for six of Colombia's main trading partners from 1986 to 2016. By using error correction models, we provide elasticity estimates. The results show that Colombia has a long-term exports is higher than imports, as well the imports exports. We conclude best policy promote boost exports, exchange rate does not offer strong influence benefits external sector depend on partner, at least with studied countries. empirical estimation Multilateral Law shows balance-of-payments constraints determine Colombian economy.