Abstract

Despite the growing relevance of subnational development strategies in emerging economies, the literature lacks empirical applications of classical trade models to territorial productive specialization. This study addresses this gap by adapting the Heckscher–Ohlin–Samuelson (HOS) model to identify optimal specialization patterns in intermediate municipalities with asymmetric factor endowments. Using data from 2017 to 2021 for Tunja and Chiquinquirá (Colombia), we estimate capital-to-labor ratios and sectoral factor intensities to detect specialization aligned with local comparative advantages. The results show that Tunja exhibits capital-abundant conditions favoring specialization in sectors such as real estate, construction, and financial services, while Chiquinquirá demonstrates labor-intensive dynamics suitable for tourism and service industries. Methodologically, the study extends the HOS model to subnational scales, offering a robust analytical tool for regional policy formulation. This article contributes to the academic debate by bridging international trade theory and regional development, and it provides empirical evidence to support place-based industrial policies. Our findings emphasize the importance of aligning productive strategies with structural endowments to foster inclusive and sustainable development in emerging territories. © 2025 by the authors.