four sectors and divide each by the country’s total exports. Using these alternative measures by broad sector sheds light on which sectors are driving the aggregate cross-country results. Finally, both types of GVC participation measures are also available at the country-sector level for an analysis of cross-country cross-sector determinants of GVC participation.

In addition to studying the “intensity”of GVC participation, as measured by the shares in gross exports, we are also interested in the levels of GVC participation (i.e., the numerator of the “intensity”) and in the levels of gross exports. Comparing the factors that a¤ect GVC participation shares with their in‡uence on GVC participation levels and on export levels indicates which determinants matter beyond traditional exports.

The main data source for the GVC participation measures is the EORA database described in Lenzen et al. (2013), which covers 190 countries over the period 1990-2015 using a 26-sector harmonized classi...cation.<sup>7</sup> The decomposition of country-level GVC participation measures into agriculture, mining, manufacturing, and services also draws on the EORA database and our cross-country cross-sector analysis relies on GVC participation measures for eight manufacturing sub-sectors in that database, listed in the Appendix.<sup>8</sup> There are several limitations to using international input-output tables to measure GVC participation. A major limitation is related to the distorted statistics that international input-output tables are based on.<sup>9</sup> In particular for lower-income countries that often do not produce national supply-use tables, the EORA data are based on interpolations and estimations, and therefore subject to measurement errors. There is also a concern regarding the lack of ...rm-level heterogeneity in the conceptual measure of GVC participation which may also lead to errors.<sup>10</sup> All these measurement errors in the EORA GVC data may bias

> 7The number of countries in our estimating sample is at most 121 due to missing data on determinants and to the exclusion of countries with problematic (negative) values for the GVC participation measures (Liberia, Moldova, Mauritius, South Sudan, Sudan, and Zimbabwe).

> 8In robustness checks we use as alternative sources the TIVA database 2016 and 2018 editions covering 64 countries over the periods 1995-2011 and 2005-2015, respectively, the WIOD 2013 release covering 40 countries in the period 1995-2011 and the WIOD 2016 release covering 43 countries in the period 2000-2014, described in Timmer et al. (2015, 2016). Further details, summary statistics and correlations among the GVC participation measures are provided in the Appendix. One interesting fact to note from the correlations is that the cross-country correlation between backward and forward GVC participation is negative.

> 9United Nations (2019) describes the major limitations in detail and proposes solutions to help substantially improve the input-output coe¢ cients used in the current international input-output tables.

> 10The GVC literature emphasizes governance of lead ...rms and their relationship with suppliers as a major feature of GVC trade but such information is unavailable in current international input-output tables.

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