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Case Study on the Role of Services Trade in Global Value Chains: Transport Services in Chile

1762-Cover_Chile Transport Services and GVCs Case Study_FINAL
Published Date October 2016
Type of Publication Reports
Publication Under APEC Secretariat, APEC Policy Support Unit
Accessed 14176
Pages 46
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This case study is one out of the four which examines the role of services in global value chains (GVCs), particularly the effects market-opening services development have had on the economy and GVCs.

Focusing on the transport services in Chile, this case study finds that Chile has undertaken substantial transport sector liberalization over recent years. On the basis of an econometric model, it is concluded that the combination of transport sector reform efforts in Chile perhaps contributed to increase GVC performance by around 7%. It also suggests that sectors like agribusiness, where GVCs are becoming more relevant for a number of APEC economies, also rely on services like transport, as well as wholesale and retail distribution. As a result, regulatory reform in key backbone services sectors, including transport, has the potential to help develop GVC activity across the APEC region.