This chapter evaluates the impacts of changes in total factor productivity (TFP) in the manufacturing sectors, classified according to technological intensities, in each Colombian department to understand how productivity shocks propagate across the country. Mapping regional TFP elasticities brings additional insights into the role played in the Colombian economy by regional-specific policies related to manufacturing activities. From the simulation results, it is possible to identify potential trade-offs between regional equity and efficiency. It is also possible to analyze the existing patterns of regional competition and complementarity. Insights driven by the results presented here can help guide Colombian incentive policies for investment in more efficient technologies and changes in institutional aspects.
