Imports elasticities of substitution for the colombian economy

Abstract

We estimate the elasticities of substitution between import and domestig goods, which can be used to build a computable generable equilibrium model for Colombia. We found that the elasticities of substitution fluctuate between 0.85 and 0.13 excluding the oil and mining sectors. Moreover, there is evidence that demand decisions for imported and domestic inputs changed starting from the trade liberalization of the beginnings of the nineties.