References

13. The logarithmic average exporter size shown in the figure corresponds to exports of about US$10 million per firm for GVC participating firms and US$1.7 million per firm for exporter-only firms in Peru. 14. The findings in this paragraph draw on the longer background paper by Fernandes, Nievas, and

Winkler (2021). 15. This question is related to a similar inconclusive debate on whether exporters perform better because of self-selection into the exporting market or because of learning by exporting. Selfselection refers to advance differences in performance across firms, while learning by exporting refers to recognizing actual performance gains of exporters versus nonexporters (Wagner 2007). 16. Sophistication is measured by how many exported goods are largely produced by wealthy countries (as further explained in the note to annex figure 1A.3). 17. The macro-level analysis decomposes the imported inputs used in overall or sectoral exports by source regions, drawing on the Trade in Value Added (TiVA) database of the Organisation for

Economic Co-operation and Development, which enables identification of the source countries of value added in exports. One caveat in using the TiVA database is that it covers only 64 countries, including only 7 Latin American and Caribbean countries (Argentina, Brazil, Chile, Colombia,

Costa Rica, Mexico, and Peru), while unidentified sources of imported inputs are classified under rest of the world (RoW). So, the RoW includes inputs originating in other Latin American and

Caribbean countries that are not part of the TiVA database.

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