Regional growth in Colombia: ¿Does inequality persist?

We provide empirical evidence for the 1980-1994 period on the theoretical linkages between regional disparities and growth. In the first part we discuss the determinants of the regional patterns of growth, endogenizing the fertility and and the functioning of the markets. In the second part, we take as reference the neoclassical model of endogenous growth and drop the assumption of homogeneity in the steady state conditions of the preferences and technology. Then, using a bayesian approach, we estimate steady state incomes and the convergence rates. For the 1980-1994 period, the results favored the no-convergence hypothesis, or the presence of persistence in regional inequalities.