For our econometric estimation we use data from WIOD.14 The estimate of valueadded
shares relies on a transformation from the direct input-output table provided by
WIOD into the Leontief inverse matrix, which describes all inputs, direct and indirect,
used in the provision of final goods.15 For our estimates, the WIOD database provides
the required data on sectoral trade, domestic expenditure, and, after transformation, the
value-added shares. We estimate the model using OLS and a panel of log-firstdifferences
from 2000 to 2009 for 13 non-petroleum manufacturing sectors in 28 of
the largest countries in the WIOD dataset.