Table 4.
Open in new tab

Positive Ownership Counts: Vertical Integration in Global Value Chains

log(number of firm-to-firm connections (⁠|$\mathrm{CF}^{rs}_{ij,t}$|⁠))PTATotal depthCore depthWTO-X depth
|$\mathrm{Backward}^{rs}_{j}$|0.017−0.031−0.013−0.046
(0.104)(0.102)(0.103)(0.101)
|$\mathrm{Forward}^{rs}_{j}$|0.448***0.407***0.420***0.406***
(0.111)(0.109)(0.110)(0.108)
|$\mathrm{PTA\textnormal {-}measures}_{ij,t}$|0.022**0.045**0.019*0.065**
(0.010)(0.021)(0.012)(0.031)
|$\mathrm{PTA\textnormal {-}measures}_{ij,t} \times \mathrm{Backward}^{rs}_{j}$|-0.175*−0.138−0.135−0.122
(0.100)(0.136)(0.106)(0.155)
|$\mathrm{PTA\textnormal {-}measures}_{ij,t} \times \mathrm{Forward}^{rs}_{j}$|0.161*0.372***0.243**0.467***
(0.095)(0.130)(0.101)(0.149)
BITij, t0.0130.0130.0130.013
(0.011)(0.011)(0.011)(0.011)
Country-pair FE✓✓✓✓
Industry-pair FE✓✓✓✓
Shareholder-country-industry-year FE✓✓✓✓
Subsidiary-country-industry-year FE✓✓✓✓
Domestic-year FE✓✓✓✓
Obs.990,033990,033990,033990,033
R20.5640.5640.5640.564
log(number of firm-to-firm connections (⁠|$\mathrm{CF}^{rs}_{ij,t}$|⁠))PTATotal depthCore depthWTO-X depth
|$\mathrm{Backward}^{rs}_{j}$|0.017−0.031−0.013−0.046
(0.104)(0.102)(0.103)(0.101)
|$\mathrm{Forward}^{rs}_{j}$|0.448***0.407***0.420***0.406***
(0.111)(0.109)(0.110)(0.108)
|$\mathrm{PTA\textnormal {-}measures}_{ij,t}$|0.022**0.045**0.019*0.065**
(0.010)(0.021)(0.012)(0.031)
|$\mathrm{PTA\textnormal {-}measures}_{ij,t} \times \mathrm{Backward}^{rs}_{j}$|-0.175*−0.138−0.135−0.122
(0.100)(0.136)(0.106)(0.155)
|$\mathrm{PTA\textnormal {-}measures}_{ij,t} \times \mathrm{Forward}^{rs}_{j}$|0.161*0.372***0.243**0.467***
(0.095)(0.130)(0.101)(0.149)
BITij, t0.0130.0130.0130.013
(0.011)(0.011)(0.011)(0.011)
Country-pair FE✓✓✓✓
Industry-pair FE✓✓✓✓
Shareholder-country-industry-year FE✓✓✓✓
Subsidiary-country-industry-year FE✓✓✓✓
Domestic-year FE✓✓✓✓
Obs.990,033990,033990,033990,033
R20.5640.5640.5640.564

Source: Authors’ calculations using the World Bank's Deep Trade Agreement, the WIOD, the UNCTAD IIA mapping and the ORBIS dataset.

Note: The table shows OLS regressions with high-dimensional fixed effects. In all columns, the dependent variable is the log of the number of firm-to-firm connections. The explanatory variables are Backward and Forward, PTA measures, their interaction terms and BIT. PTA measures change by column: in column (1) PTA is a dummy variable, in column (2) we use PTAs' total depth, in column (3) we employ PTAs' core depth and in column (4) we use PTAs' WTO-X depth. Standard errors are clustered at the country-industry-pair level and reported in parentheses. *p < 0.1, **p < 0.05, ***p < 0.01.

Table 4.
Open in new tab

Positive Ownership Counts: Vertical Integration in Global Value Chains

log(number of firm-to-firm connections (⁠|$\mathrm{CF}^{rs}_{ij,t}$|⁠))PTATotal depthCore depthWTO-X depth
|$\mathrm{Backward}^{rs}_{j}$|0.017−0.031−0.013−0.046
(0.104)(0.102)(0.103)(0.101)
|$\mathrm{Forward}^{rs}_{j}$|0.448***0.407***0.420***0.406***
(0.111)(0.109)(0.110)(0.108)
|$\mathrm{PTA\textnormal {-}measures}_{ij,t}$|0.022**0.045**0.019*0.065**
(0.010)(0.021)(0.012)(0.031)
|$\mathrm{PTA\textnormal {-}measures}_{ij,t} \times \mathrm{Backward}^{rs}_{j}$|-0.175*−0.138−0.135−0.122
(0.100)(0.136)(0.106)(0.155)
|$\mathrm{PTA\textnormal {-}measures}_{ij,t} \times \mathrm{Forward}^{rs}_{j}$|0.161*0.372***0.243**0.467***
(0.095)(0.130)(0.101)(0.149)
BITij, t0.0130.0130.0130.013
(0.011)(0.011)(0.011)(0.011)
Country-pair FE✓✓✓✓
Industry-pair FE✓✓✓✓
Shareholder-country-industry-year FE✓✓✓✓
Subsidiary-country-industry-year FE✓✓✓✓
Domestic-year FE✓✓✓✓
Obs.990,033990,033990,033990,033
R20.5640.5640.5640.564
log(number of firm-to-firm connections (⁠|$\mathrm{CF}^{rs}_{ij,t}$|⁠))PTATotal depthCore depthWTO-X depth
|$\mathrm{Backward}^{rs}_{j}$|0.017−0.031−0.013−0.046
(0.104)(0.102)(0.103)(0.101)
|$\mathrm{Forward}^{rs}_{j}$|0.448***0.407***0.420***0.406***
(0.111)(0.109)(0.110)(0.108)
|$\mathrm{PTA\textnormal {-}measures}_{ij,t}$|0.022**0.045**0.019*0.065**
(0.010)(0.021)(0.012)(0.031)
|$\mathrm{PTA\textnormal {-}measures}_{ij,t} \times \mathrm{Backward}^{rs}_{j}$|-0.175*−0.138−0.135−0.122
(0.100)(0.136)(0.106)(0.155)
|$\mathrm{PTA\textnormal {-}measures}_{ij,t} \times \mathrm{Forward}^{rs}_{j}$|0.161*0.372***0.243**0.467***
(0.095)(0.130)(0.101)(0.149)
BITij, t0.0130.0130.0130.013
(0.011)(0.011)(0.011)(0.011)
Country-pair FE✓✓✓✓
Industry-pair FE✓✓✓✓
Shareholder-country-industry-year FE✓✓✓✓
Subsidiary-country-industry-year FE✓✓✓✓
Domestic-year FE✓✓✓✓
Obs.990,033990,033990,033990,033
R20.5640.5640.5640.564

Source: Authors’ calculations using the World Bank's Deep Trade Agreement, the WIOD, the UNCTAD IIA mapping and the ORBIS dataset.

Note: The table shows OLS regressions with high-dimensional fixed effects. In all columns, the dependent variable is the log of the number of firm-to-firm connections. The explanatory variables are Backward and Forward, PTA measures, their interaction terms and BIT. PTA measures change by column: in column (1) PTA is a dummy variable, in column (2) we use PTAs' total depth, in column (3) we employ PTAs' core depth and in column (4) we use PTAs' WTO-X depth. Standard errors are clustered at the country-industry-pair level and reported in parentheses. *p < 0.1, **p < 0.05, ***p < 0.01.

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