Finally, we observe that many of our results are driven by high- and upper-middle-income countries. Notable exceptions are standards and business climate and institutions. In any case, we consider that the conclusions are highly relevant for developing economies nonetheless. Many high- and upper-middleincome countries have higher levels of GVC integration and it is then evident that they are responsible for a significant part of our results. However, as low- and lower-middle-income countries integrate more and more into GVCs, we expect that such domestic policies will play an increasing role.

This source of heterogeneity represents an important area for further research. A better understanding of the role the type of GVC integration plays allows for the design of more accurate country-specific GVC strategies. In addition, other sources of heterogeneity should be examined in more detail. For instance, differences in effects that depend on the stage of development or a country’s proximity could be highly relevant. Finally, it would be important to complement this work with a narrower analysis that assesses the role and the transmission channels of each of these policies. While we shed some light on these issues, more detailed research would be welcome.

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