4). The World Bank collects these sectoral value added data from national accounts and converts them from local currency units to constant prices in 2010 U.S. dollars. The disaggregation of the national value added into three sectors accords with the sectoral definition of the ISIC 4 by the United Nations as follows.<sup>7</sup> Agriculture value added contains ISIC 4 sectors 01-03: forestry and hunting, fishing, cultivation of crops and livestock production; manufacturing or industry value added consists of ISIC 4 sectors 05-43: mining, manufacturing, utilities, and construction; and services value added covers the remaining ISIC 4 sectors 45-99: wholesale and retail trade, transport, government, financial, professional, personal services, and miscellaneous value added, such as imputed bank services and import duties.

The IEA provides sector-level electricity consumption by using a slightly different composition for the manufacturing and service sectors, while applying the identical definition for the agriculture sector. The IEA compiles the data on the country-sector level by using national sources.<sup>8</sup> It defines the agriculture sector according to the ISIC 4 and includes sub-sectors 01-03, where the electricity consumption for the fishing industry also contains the provision of electricity to ships refueling in the country. Furthermore, the manufacturing sector comprises the ISIC 4 codes 07-18, 20-32, and 41-43, notably leaving out subsectors 33-40 and including most of them in the services sector. From IEA data, the services sector combines separately provided transport and service sectors with their respective ISIC 4 codes: 49-51 for transport and 33, 36-39, 45-47, 52, 53, 55-56, 58-66, 68-75, 77-82, 84 (excluding 8422), 85-88, 90-96, and 99 for commercial and public services. While discrepancies in the classifications of the manufacturing and service sectors in WDI and IEA are insignificant, they should be considered when interpreting the results.

To control for observed-country and sector-specific characteristics, the study includes several control variables from both the WDI and Penn World Tables Version 9 (PWT 9).<sup>9</sup> These control variables need to show variation over time, as the selected econometric approach eliminates country fixed effects that refer to time-invariant observed and unobserved country-specific factors to avoid omitted variable bias in the estimators. This requirement substantially limits the number of available indicators that can be used in the regressions. Among these indicators are countries’ import and export shares in GDP as well as shares

> 7 For a detailed description of these classifications see:

> United Nations Statistics Division. (2002). International Standard Industrial Classification of All Economic Activities (ISIC) Revision 3.1. United Nations Statistics Division. (2008). International Standard Industrial Classification of All Economic Activities Revision 4.

> 8 The IEA’s World Energy Balances 2018 Edition – Database Documentation provides a country-by-country description of sources for energy and electricity generation and consumption.

> 9 https://www.rug.nl/ggdc/productivity/pwt/pwt-releases/pwt9.0.

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