low-value-added, basic intermediates that require more routine-intensive work tends to be outsourced to less developed countries (factory economies), while the production of non-routine tasks remains in countries at higher development levels (Baldwin, 2013).

Table 2. The relationship between GVC participation and RTI, total and by sector and occupation type, standardized

|Dependent variable: worker-level RTI|(1)|(2)|(3)|
|---|---|---|---|
|Panel A: Industry|All|Non-|Offshorable|
||workers|offshorable||
|Backward Global Value Chain participation (GVCB) share in exports||||
|(std.)|0.027<br>|-0.007<br>|0.092***<br>|
||(0.024)|(0.027)|(0.029)|
|GVCB share (std.) * [Ln(GDP pc) –mean(Ln(GDP pc)]|0.004|0.018|-0.021|
||(0.032)|(0.036)|(0.040)|
|Forward Global Value Chain participation (GVCF) share in exports (std.)|0.030**|0.008|0.062***|
||(0.015)|(0.018)|(0.019)|
|GVCF share (std.) * [Ln(GDP pc) –mean(Ln(GDP pc)]|-0.043***|-0.030|-0.079***|
||(0.017)|(0.020)|(0.023)|
|Ln(GDP per capita) –mean(Ln(GDP per capita))|-0.096|0.006|-0.304***|
||(0.066)|(0.081)|(0.103)|
|Observations|38,917|28,790|10,127|
|Panel B: Business services||||
|Backward Global Value Chain participation (GVCB) share in exports||||
|(std.)|-0.055**|-0.056**|-0.002|
||(0.024)|(0.027)|(0.044)|
|GVCB share (std.) * [Ln(GDP pc) –mean(Ln(GDP pc)]|0.063*|0.083**|-0.080*|
||(0.037)|(0.039)|(0.047)|
|Forward Global Value Chain participation (GVCF) share in exports (std.)|-0.015|-0.020|0.019|
||(0.016)|(0.017)|(0.024)|
|GVCF share (std.) * [Ln(GDP pc) –mean(Ln(GDP pc)]|-0.046***|-0.043**|-0.064**|
||(0.017)|(0.017)|(0.029)|
|Ln(GDP per capita) –mean(Ln(GDP per capita))|-0.027|-0.017|-0.067|
||(0.049)|(0.049)|(0.078)|
|Observations|71,979|63,003|8,976|
|Panel C: Other services||||
|Backward Global Value Chain participation (GVCB) share in exports<br>||||
|(std.)|0.220***|0.206***|0.396***|
||(0.079)|(0.079)|(0.152)|
|GVCB share (std.) * [Ln(GDP pc) –mean(Ln(GDP pc)]|-0.329***|-0.326***|-0.400|
||(0.114)|(0.114)|(0.257)|
|Forward Global Value Chain participation (GVCF) share in exports (std.)|0.029|0.023|0.116**|
||(0.023)|(0.023)|(0.057)|
|GVCF share (std.) * [Ln(GDP pc) –mean(Ln(GDP pc)]|-0.073**|-0.077**|0.013|
||(0.032)|(0.032)|(0.064)|
|Ln(GDP per capita) –mean(Ln(GDP per capita))|-0.210***|-0.126*|-0.129|
||(0.076)|(0.074)|(0.180)|
|Observations|50,843|48,133|2,710|

Note: ***p < 0.01, **p < 0.05, *p < 0.1. Standard errors in parentheses. Standardized weights are used that give each country equal weight. The standard errors are clustered at a sector × country level. Measures for GVCB share and GVCF share are standardized. All regressions include controls for technology (computer use, computer use squared), FDI, skills, education, age, gender, sector FE, and sector FE interacted with GDP per capita.

Source: Authors’ calculations based on PIAAC, STEP, CULS (tasks), World Bank (GDP), EORA data and Borin and Mancini (2015, 2019) (GVC participation measures).

In business services, we find a negative association between backward GVC participation and workers’ RTI (Table 2, Panel B, column 1). Due to the positive interaction term with GDP per capita, this effect is weaker in countries at higher development levels: it disappears in countries with GDP per capita twice the sample average, comparable to the United States, and becomes positive in countries with even higher GDP per capita (e.g., 10