EconTR2020@Eskisehir International Conference on Economics September 10-12, 2020; Eskisehir Osmangazi University, Eskisehir, Turkey The Impacts of Production Lengths on Sectoral Performance: The Case of EU and US Industries Pınar Tat Gebze Technical University, Turkey pinartat@gtu.edu.tr Halit Yanıkkaya Gebze Technical University, Turkey halityanikkaya@yahoo.com Abdullah Altun Informatics and Information Security Research Center, The Scientific and Technological Research Council of Turkey, Turkey abdullah.altun@tubitak.gov.tr Abstract: This paper aims to understand how the extent of integration affects sectoral total factor productivity and value added growth for the periods 1996-2011 and 2005-2015 for 14 European countries and the United States. Our estimation results show that while forward production length raises the total factor productivity and value added of manufacturing sectors only for the earlier period, it promotes both sectoral performance measures for the service sectors in both periods. For both manufacturing and service sectors and both periods, we obtain a compelling evidence of negative effects of backward length of non-GVCs on total factor productivity and value added growth. We also find that backward length of GVC activities increases value added growth. For service sectors, when forward length of non-GVCs activities rises, sectoral performance variables are positively affected, which reveals the complementarity role of services sector in domestic production. Strong evidence for the negative impact of buying from domestic market or importing final products from international market and the positive impact of importing intermediates, participating in GVCs, on sectoral performance indicate that the success of industries is highly dependent on their efficient integration in the global production process. Keywords: Production Lengths, Upstreamness, Sectoral TFP Growth, Sectoral Value-Added Growth JEL Codes: F14, F43, F68, O24