Consistency of micro- and macro-level data on global value chains: Evidence from selected European countries

Abstract

This study investigates the degree of consistency and fungibility of micro and macro sources of global value chain (GVC) data. We combine two datasets for selected European countries over the period 2001–2014: the European Union-European Firms in a Global Economy (EU-EFIGE) firm-level dataset (integrated with panel balance sheet data from Amadeus) and the World Input–Output Database (WIOD) at the country and sectoral level. Although the two datasets come from different sources and are based on different assumptions, we find that (i) the WIOD-based country and sectoral GVC indicators are positively correlated with firm-level proxies based on EFIGE data; and (ii) the GVC indicators from both sources are positively correlated with firm-level labor productivity. These outcomes are robust to various empirical tests and specifications, as well as to controlling for firm, sector, and country heterogeneity. Our results hold relevance for scholars by demonstrating that the available inter-country input–output (ICIO) data can be used to compensate for the scarcity of firm-level data for evidence-based GVC analyses. • We contribute to the applied literature by making methodological advances in GVC data use. • We combine the available micro and macro GVC data for four European countries. • We demonstrate that GVC measures computed from the two data sources are highly consistent. • We advocate utilizing the available ICIO data sources for evidence-based GVC analyses.