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FINANCING CITIES IN THE GLOBAL ECONOMY LOCATION AND GEOGRAPHICAL ECONOMICS Liga Mieze

FINANCING CITIES IN THE GLOBAL ECONOMY LOCATION AND GEOGRAPHICAL ECONOMICS Liga Mieze Denis Assimwe Kangere Bizuneh Gultu Lakew Camilo Mendoza. May 2005 IHS- Rotterdam. Colombia General Information. Mid Point between North and South America 2 Oceans: Atlantic & Pacific

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FINANCING CITIES IN THE GLOBAL ECONOMY LOCATION AND GEOGRAPHICAL ECONOMICS Liga Mieze

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  1. FINANCING CITIES IN THE GLOBAL ECONOMY LOCATION AND GEOGRAPHICAL ECONOMICS Liga Mieze Denis Assimwe Kangere Bizuneh Gultu Lakew Camilo Mendoza May 2005 IHS- Rotterdam

  2. Colombia General Information • MidPoint between North and South America • 2 Oceans: Atlantic & Pacific • Spanish language Source: Biological Resources Investigation Institute Alexander Von Humboldt, 2000

  3. Colombia General Information • Why Colombia? • Because of its location ~ could be a bridge between North and South America • In negotiation a Free Trade Treaty with USA • Analysing a Latin American Country • 1,141,748 km2 inland – 928.660 km2 on water • Population: 46 million • 72% in cities Source: IGAC

  4. Urbanisation Colombia turned from a mainly rural country to an urban one in the last half century as a result of: • industrialization / diversification of exports (mining products) • agriculture technology improvement • development of third sector activities • rural violence • high birth rates • revenue concentration

  5. Monteria Bucaramanga Medellin Tunja Pereira Buenaventura Cali Pasto • 36% of the population live in the selected cities Source: Dane

  6. Simulation Assumptions • Delta 0.67 reflects the percentage of expenses on manufacturing • Epsilon as provided by model • Tau(congestion parameter) small deviation & large deviations used • Stop criterion and adjustment speed as provided by the model • Initial distribution of mobile& immobile workers based on the population • Distances based on time of travel between the different cities

  7. Base Scenario Distribution of Workers

  8. Scenario 1 • With tau at 0.2 and transport cost fixed at 1.3,we observe a tendency to spread

  9. Scenario2 • With tau increased to 0.3 and transport cost still fixed at 1.3,we observe a tendency to spread to the cities to the far right

  10. Scenario 3 • With tau at 0.4 and transport cost fixed at 1.3,we observe a tendency to spread

  11. Conclusions • City 12(Tunja) tends to attract the mobile workers as the congestion increases • Promote policies that improve the connectivity of the other cities

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