Data for: Export sophistication and economic performance, new evidence using TiVA database
Description
The data allow to investigate the relationship between export sophistication and economic performance for 64 countries over 2005-2015 period, based on Hausmann, Hwang and Rodrik (2007). PRODY and EXPY measures are computed using domestic value-added exports available from TiVA dataset instead of gross exports. TiVA dataset covers 35 sectors including 21 manufacturing and 14 services sectors, which allows to measure the impact of goods and services on income, alike. Other variables are gathered from different datasets. A dynamic panel GMM approach is followed. Income ratio defined as lnGDPpc/lnEXPY is employed as the dependent variable. Explaining variables include economic structure, technological content of exports, and TiVA new variables including backward and forward linkages variables. Strong evidence of the positive effect of manufacturing sector on countries’ economic performance is found. Weak evidence has been provided in favor of exports led growth hypothesis when taking conventional exports data into account, with the exception of high tech. and ICT exported goods, which have strong positive and significant effect on income. Relying on TiVA new indicators give new insights into countries GVCs participation gains. Thus, backward linkages seem to have an important role given their positive and significant effect on income, either sourced from commodities or services activities. Forward linkages seem to have mixed effects, depending on the end use of the exported domestic value-added, playing a prominent income role when domestic value-added is reimported, embodied in foreign final demand or when re-exporting intermediate imports as share of intermediate imports, suggesting that countries should not take GVCs’ benefits for granted. Some results and correlations matrix are available.