vBY=VLYd+VLyF +Vla LYD+VLA (BY-LYDy a Summing up along the column direction Decompose country-sector final goods production in terms of where the value added comes from igure 1b Decomposition final goods production Which part of final goods production and trade belong to gvcs? Production of final goods and services by country/sector(Y) Backward linkage GVC Participation Ratio: Domestic VA in Domestic VA in final Domestic and foreign VA Y GVC domestically used final exports in intermediate imports products(Y D) MY RT) M_ GVC Partner VA in production In production of exported of domestic used products (Y GVC C) Y GVC S𝑽෡𝑩𝒀෡ = 𝑉෠𝐿𝑌෠𝐷 + 𝑉෠𝐿𝑌෠𝐹 + 𝑉෠𝐿𝐴 𝐹𝐿𝑌෠𝐷 + 𝑉෠𝐿𝐴 𝐹 (𝐵𝑌෠ − 𝐿𝑌෠𝐷) Figure 1b Decomposition final goods production — Which part of final goods production and trade belong to GVCs?  Summing up along the column direction: Decompose country-sector final goods production in terms of where the value added comes from. Backward Linkage GVC Participation Ratio: 𝑌_𝐺𝑉𝐶 𝑌