This paper describes the evolution of industry in the departamentos of Antioquia and Valle (in Colombia) during the 1975-1989 period. We emphasize the adjustments of the structure of production, the flexibility of employment and the regional differences in terms of factor specialization and comparative advantages. In the second part, we use partial equilibrium analysis to quantify the impact that trade liberalization may have on output, employment and profit margins. Finally we measure the total productivity gain required to maintain our industry in competitive conditions.
