# 1.2 Data for Cross-Country Cross-Sector Analysis

For country-sector speci...cations, we estimate the impact of country-sector determinants in year t-3 on country-sector GVC participation in year t, e¤ectively covering the period 19992015. Summary statistics for the EORA GVC participation shares and all the determinants at the country-sector level are provided in Table A5 and correlations among all determinants at country-sector level are provided in Table A6.

We interact each country-year determinant with its corresponding sectoral intensity of use across manufacturing sub-sectors to obtain measures that vary at the country-sectoryear level. For labor endowments we use the country-level share of high-skilled workers following the ILO’s de...nition of low skill (skill levels 3 and 4) based on the International Standard Classi...cation of Occupations. We interact the country skilled labor endowment with a benchmark measure of skill intensity in the US de...ned as the ratio of skilled workers to unskilled workers by sector taken from the NBER-CES Manufacturing Industry Database. For capital endowments, we use the ratio of real capital stock to total employment at the country level from Penn World Tables which we interact with a benchmark measure of capital intensity in the US by sector taken from the NBER-CES Manufacturing Industry Database.

To capture natural resources endowments, we interact the natural resources to GDP ratio from WDI with an indicator for natural resource intensive sectors based on Braun (2003). For country institutional quality we use the rule of law index from the World Governance Indicators database which is interacted with the measure of contract intensity proposed by Nunn (2007). The measure of contract intensity is determined by the share of specialized and customized intermediate inputs used in the production of the ...nal good for each sector based on a U.S. input-output table.<sup>42</sup> Additionally, our model controls for three types of tari¤ measures: tari¤s imposed at home on imports of the sector, tari¤s imposed at home on imports of intermediate inputs used by the sector, and tari¤s imposed in destination markets on exports of the sector. The tari¤s draw on a newly constructed database by Felbermayr et al. (2019), which is based on the UN-TRAINS and IDB databases, as well as on WITS import and export data. To compute the three types of tari¤ measures, we draw on tari¤ and trade data at the reporting country-HS6-digit-partner country-year level from WITS.

First, to construct tari¤s imposed at home on imports of the sector we ...rst aggregate tari¤s (taking the simple average) and imports (taking the sum) to the EORA sector level. We then sum imports across countries of origin to obtain import weights which are used to compute tari¤s imposed at home on imports of a sector as a weighted-average tari¤ at the reporting country-EORA sector-year level.

Second, we construct tari¤s imposed at home on imports of intermediate inputs used by the sector as follows. We keep tari¤ data and import data only for HS 6-digit products classi...ed as intermediates according to the UN Broad Economic Categories (BEC) classi-

> 42Nunn uses data on the fraction of each input that is not sold in an organized exchange nor referencepriced according to Rauch (1999) to construct the share of intermediate inputs that require specialized and customized business relationships. Nunn’s contract intensity measure (based on Rauch’s liberal classi...cation) is available at the 3-digit ISIC revision 2 level which is concorded to the eight manufacturing sectors in the EORA database based on industries’verbal descriptions.

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