exporting country and value-added component, 2015

and restaurant sector has a large proportion of backward linkages, but its overall GVC integration is the least of any sector. In other sectors, with the exception of transportation, forward linkages—supplying inputs for the production of partner country exports—tend to predominate. The most integrated sectors are wholesale and retail trade (distribution), as well as maintenance and repair. The next three sectors all have roughly average integration within the region, while hotels and restaurants have substantially less.

Similar variation is evident at the country level. Usually, smaller countries display more GVC integration (figure 5.8), though the balance of backward and

Figure 5.8 Decomposition of Latin American and Caribbean intraregional services exports, by exporting country and value-added component, 2015

Antigua and Barbuda Argentina Aruba Bahamas, The Barbados Belize Bolivia Brazil British Virgin Islands Cayman Islands Chile Colombia Costa Rica Cuba Dominican Republic Ecuador El Salvador Guatemala Guyana Haiti Honduras Jamaica Mexico Nicaragua Panama Paraguay Peru Suriname Trinidad and Tobago Uruguay Venezuela, RB

0 5 10 15 20 25 30 35 40 45 Share of intraregional services exports (%) Backward GVC linkages Forward GVC linkages

Source: Borin and Mancini 2019. Note: The decomposition is based on the Eora global supply chain database’s multiregion input-output table, which records services trade based on the balance of payments, capturing primarily General Agreement on Trade in Services (GATS) mode of supply 1 (cross-border supply) and some elements of mode 2 (consumption abroad) and mode 4 (movement of service provider) but not mode 3 (commercial presence of foreign affiliates). Because input-output tables use a locational rather than an ownership principle, they attribute sales to companies based on their geographical location, not the geographical location of the owning entity. “Backward global value chain (GVC) linkages” refers to the share of imported inputs in a country’s exports. “Forward GVC linkages” refers to the share of exports that are inputs for another country’s export production.