Because little formal analysis of the changing value chain structures of industries in South America countries exists (let alone substantive work assessing the impact on the region’s economy of these changes), it is difficult to generalize and to draw any firm conclusions. Nevertheless, despite the complexity and high transportation costs of the P&E industry’s value chain, on average, Colombian exports have faced relatively low transportation costs. Therefore, an assessment of the micro- and macroeconomic conditions favoring Colombian producers may provide valuable lessons for other countries in the region. Finally, and as has been demonstrated from the gains made by consumers in other parts of the world where the aviation sector has been liberalized, full deregulation of the aviation sector, including declaring open skies for all cargo unilaterally, remains a viable option that policymakers in South American countries may want to seriously consider.
Because little formal analysis of the changing value chain structures of industries in South America countries exists (let alone substantive work assessing the impact on the region’s economy of these changes), it is difficult to generalize and to draw any firm conclusions. Nevertheless, despite the complexity and high transportation costs of the P&E industry’s value chain, on average, Colombian exports have faced relatively low transportation costs. Therefore, an assessment of the micro- and macroeconomic conditions favoring Colombian producers may provide valuable lessons for other countries in the region. Finally, and as has been demonstrated from the gains made by consumers in other parts of the world where the aviation sector has been liberalized, full deregulation of the aviation sector, including declaring open skies for all cargo unilaterally, remains a viable option that policymakers in South American countries may want to seriously consider.
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