IDEAS home Printed from https://ideas.repec.org/a/gam/jlands/v11y2022i10p1864-d949046.html
   My bibliography  Save this article

Agricultural Production Networks and Upgrading from a Global–Local Perspective: A Review

Author

Listed:
  • Xinyu Yang

    (Key Laboratory of Regional Sustainable Development Modeling, Institute of Geographic Sciences and Natural Resources Research, Chinese Academy of Sciences, Beijing 100101, China
    College of Resources and Environment, University of Chinese Academy of Sciences, Beijing 100049, China)

  • Weidong Liu

    (Key Laboratory of Regional Sustainable Development Modeling, Institute of Geographic Sciences and Natural Resources Research, Chinese Academy of Sciences, Beijing 100101, China
    College of Resources and Environment, University of Chinese Academy of Sciences, Beijing 100049, China)

Abstract

The COVID-19 pandemic, extreme temperatures and the Russia–Ukraine conflict have exposed deficiencies in global agricultural production capacity and governance systems, which left low-income countries and regions to face more severe food insecurity. Thus, there is an urgent need for agricultural upgrading and the establishment of a more sustainable agricultural system. Although there is a large body of literature with rich theoretical and empirical case studies, there is still a lack of systematic analysis of these studies, and the summary of global agricultural production networks and the agricultural upgrading process is not sufficient. This article will first set up an organisational framework of global agricultural production networks and explore the implications of governance and agricultural upgrading within this framework. It will then summarise the local agricultural upgrading processes on global, national and local scales based on a review of the existing literature. The article argues that agricultural upgrading in the context of global linkages is mainly driven by private-sector standards while the state also plays multiple roles. Moreover, in the embedding process of global agricultural production networks into local areas, local actors can promote agricultural upgrading through capacity building and organisational innovation. This review has implications for the economic, social and environmental sustainability of agriculture in developing countries, and provides a reference for future research.

Suggested Citation

  • Xinyu Yang & Weidong Liu, 2022. "Agricultural Production Networks and Upgrading from a Global–Local Perspective: A Review," Land, MDPI, vol. 11(10), pages 1-14, October.
  • Handle: RePEc:gam:jlands:v:11:y:2022:i:10:p:1864-:d:949046
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2073-445X/11/10/1864/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2073-445X/11/10/1864/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ponte, Stefano & Kelling, Ingrid & Jespersen, Karen Sau & Kruijssen, Froukje, 2014. "The Blue Revolution in Asia: Upgrading and Governance in Aquaculture Value Chains," World Development, Elsevier, vol. 64(C), pages 52-64.
    2. Rory Horner & Matthew Alford, 2019. "The roles of the state in global value chains," Chapters, in: Stefano Ponte & Gary Gereffi & Gale Raj-Reichert (ed.), Handbook on Global Value Chains, chapter 34, pages 555-569, Edward Elgar Publishing.
    3. Valerie Nelson & Anne Tallontire, 2014. "Battlefields of ideas: changing narratives and power dynamics in private standards in global agricultural value chains," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 31(3), pages 481-497, September.
    4. Neil M Coe & Henry Wai-chung Yeung, 2019. "Global production networks: mapping recent conceptual developments," Journal of Economic Geography, Oxford University Press, vol. 19(4), pages 775-801.
    5. Markus Hassler & Martin Franz, 2013. "The Bridging Role Of Intermediaries In Food Production Networks: Indian Organic Pepper In Germany," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 104(1), pages 29-40, February.
    6. O'Hara, Sabine & Toussaint, Etienne C., 2021. "Food access in crisis: Food security and COVID-19," Ecological Economics, Elsevier, vol. 180(C).
    7. Saurabh Arora & Naomi Baan Hofman & Vinod Koshti & Tommaso Ciarli, 2013. "Cultivating Compliance: Governance of North Indian Organic Basmati Smallholders in a Global Value Chain," Environment and Planning A, , vol. 45(8), pages 1912-1928, August.
    8. Ben Slimane, Mehdi & Huchet-Bourdon, Marilyne & Zitouna, Habib, 2016. "The role of sectoral FDI in promoting agricultural production and improving food security," International Economics, Elsevier, vol. 145(C), pages 50-65.
    9. German, Laura A. & Bonanno, Anya M. & Foster, Laura Catherine & Cotula, Lorenzo, 2020. "“Inclusive business” in agriculture: Evidence from the evolution of agricultural value chains," World Development, Elsevier, vol. 134(C).
    10. Otto Hospes, 2014. "Marking the success or end of global multi-stakeholder governance? The rise of national sustainability standards in Indonesia and Brazil for palm oil and soy," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 31(3), pages 425-437, September.
    11. Gary Gereffi & Joonkoo Lee, 2016. "Economic and Social Upgrading in Global Value Chains and Industrial Clusters: Why Governance Matters," Journal of Business Ethics, Springer, vol. 133(1), pages 25-38, January.
    12. Spencer Henson & John Humphrey, 2010. "Understanding the Complexities of Private Standards in Global Agri-Food Chains as They Impact Developing Countries," Journal of Development Studies, Taylor & Francis Journals, vol. 46(9), pages 1628-1646.
    13. Alexandra Hughes & Cheryl McEwan & David Bek, 2013. "Retailers, supply networks and changing articulations of ethicality: lessons from Flower Valley in South Africa," Journal of Economic Geography, Oxford University Press, vol. 13(2), pages 211-230, March.
    14. Maertens, Miet & Swinnen, Johan F.M., 2009. "Trade, Standards, and Poverty: Evidence from Senegal," World Development, Elsevier, vol. 37(1), pages 161-178, January.
    15. Raynolds, Laura T., 2004. "The Globalization of Organic Agro-Food Networks," World Development, Elsevier, vol. 32(5), pages 725-743, May.
    16. Gary Gereffi, 2014. "Global value chains in a post-Washington Consensus world," Review of International Political Economy, Taylor & Francis Journals, vol. 21(1), pages 9-37, February.
    17. Kanchana N. Ruwanpura & Neil Wrigley, 2011. "The costs of compliance? Views of Sri Lankan apparel manufacturers in times of global economic crisis," Journal of Economic Geography, Oxford University Press, vol. 11(6), pages 1031-1049, November.
    18. Dries, Liesbeth & Swinnen, Johan F. M., 2004. "Foreign Direct Investment, Vertical Integration, and Local Suppliers: Evidence from the Polish Dairy Sector," World Development, Elsevier, vol. 32(9), pages 1525-1544, September.
    19. Ray Goldberg, 1981. "The Role of the Multinational Corporation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(2), pages 367-374.
    20. Timothy Sturgeon & Johannes Van Biesebroeck & Gary Gereffi, 2008. "Value chains, networks and clusters: reframing the global automotive industry," Journal of Economic Geography, Oxford University Press, vol. 8(3), pages 297-321, May.
    21. Elvira Uyarra & Kieron Flanagan, 2022. "Going beyond the line of sight: institutional entrepreneurship and system agency in regional path creation," Regional Studies, Taylor & Francis Journals, vol. 56(4), pages 536-547, April.
    22. Barron, Maria Antonieta & Rello, Fernando, 2000. "The impact of the tomato agroindustry on the rural poor in Mexico," Agricultural Economics, Blackwell, vol. 23(3), pages 289-297, September.
    23. James T. Murphy & Seth Schindler, 2011. "Globalizing development in Bolivia? Alternative networks and value-capture challenges in the wood products industry," Journal of Economic Geography, Oxford University Press, vol. 11(1), pages 61-85, January.
    24. Viet Hoang & An Nguyen & Carmen Hubbard & Khanh-Duy Nguyen, 2021. "Exploring the Governance and Fairness in the Milk Value Chain: A Case Study in Vietnam," Agriculture, MDPI, vol. 11(9), pages 1-22, September.
    25. Stefan Ouma, 2010. "Global Standards, Local Realities: Private Agrifood Governance and the Restructuring of the Kenyan Horticulture Industry," Economic Geography, Clark University, vol. 86(2), pages 197-222, April.
    26. Rory Horner & Matthew Alford, 2019. "The roles of the state in global value chains: an update and emerging agenda," Global Development Institute Working Paper Series 362019, GDI, The University of Manchester.
    27. Neil M. Coe & Peter Dicken & Martin Hess, 2008. "Global production networks: realizing the potential," Journal of Economic Geography, Oxford University Press, vol. 8(3), pages 271-295, May.
    28. Coe, Neil M. & Yeung, Henry Wai-chung, 2015. "Global Production Networks: Theorizing Economic Development in an Interconnected World," OUP Catalogue, Oxford University Press, number 9780198703914.
    29. Gibbon, Peter, 2001. "Upgrading Primary Production: A Global Commodity Chain Approach," World Development, Elsevier, vol. 29(2), pages 345-363, February.
    30. Doris Fuchs & Agni Kalfagianni & Tetty Havinga, 2011. "Actors in private food governance: the legitimacy of retail standards and multistakeholder initiatives with civil society participation," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 28(3), pages 353-367, September.
    31. Dave D. Weatherspoon & Thomas Reardon, 2003. "The Rise of Supermarkets in Africa: Implications for Agrifood Systems and the Rural Poor," Development Policy Review, Overseas Development Institute, vol. 21, pages 333-355, May.
    32. Alex Hughes & Neil Wrigley & Martin Buttle, 2008. "Global production networks, ethical campaigning, and the embeddedness of responsible governance," Journal of Economic Geography, Oxford University Press, vol. 8(3), pages 345-367, May.
    33. Durand, Claire & Fournier, Stéphane, 2017. "Can Geographical Indications Modernize Indonesian and Vietnamese Agriculture? Analyzing the Role of National and Local Governments and Producers’ Strategies," World Development, Elsevier, vol. 98(C), pages 93-104.
    34. Peter Lund-Thomsen & Adam Lindgreen, 2014. "Corporate Social Responsibility in Global Value Chains: Where Are We Now and Where Are We Going?," Journal of Business Ethics, Springer, vol. 123(1), pages 11-22, August.
    35. Matias Ramirez & Ian Clarke & Laurens Klerkx, 2018. "Analysing intermediary organisations and their influence on upgrading in emerging agricultural clusters," Environment and Planning A, , vol. 50(6), pages 1314-1335, September.
    36. Margherita Scoppola, 2021. "Globalisation in agriculture and food: the role of multinational enterprises [Internalizing global value chains: a firm-level analysis]," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 48(4), pages 741-784.
    37. Hamid El Bilali & Carola Strassner & Tarek Ben Hassen, 2021. "Sustainable Agri-Food Systems: Environment, Economy, Society, and Policy," Sustainability, MDPI, vol. 13(11), pages 1-67, June.
    38. Claire Durand & Stéphane Fournier, 2017. "Can geographical indications modernize Indonesian and Vietnamese agriculture? Analyzing the role of national and local governments and producers’ strategies," Post-Print hal-01651307, HAL.
    39. Ann Florini & Markus Pauli, 2018. "Collaborative governance for the Sustainable Development Goals," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 5(3), pages 583-598, September.
    40. Matthew Alford & Nicola Phillips, 2018. "The political economy of state governance in global production networks: change, crisis and contestation in the South African fruit sector," Review of International Political Economy, Taylor & Francis Journals, vol. 25(1), pages 98-121, January.
    41. Ann Florini and Markus Pauli, 2018. "Collaborative governance for the Sustainable Development Goals," Asia and the Pacific Policy Studies 201842, Crawford School of Public Policy, The Australian National University.
    42. Thomas Reardon & C. Peter Timmer & Christopher B. Barrett & Julio Berdegué, 2003. "The Rise of Supermarkets in Africa, Asia, and Latin America," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(5), pages 1140-1146.
    43. Cusmano, Lucia & Morrison, Andrea & Rabellotti, Roberta, 2010. "Catching up Trajectories in the Wine Sector: A Comparative Study of Chile, Italy, and South Africa," World Development, Elsevier, vol. 38(11), pages 1588-1602, November.
    44. Henry Wai-chung Yeung, 2021. "The trouble with global production networks," Environment and Planning A, , vol. 53(2), pages 428-438, March.
    45. Jaffee, Steve & Masakure, Oliver, 2005. "Strategic use of private standards to enhance international competitiveness: Vegetable exports from Kenya and elsewhere," Food Policy, Elsevier, vol. 30(3), pages 316-333, June.
    46. Poulton, Colin & Dorward, Andrew & Kydd, Jonathan, 2010. "The Future of Small Farms: New Directions for Services, Institutions, and Intermediation," World Development, Elsevier, vol. 38(10), pages 1413-1428, October.
    47. Janina Grabs & Stefano Ponte, 2019. "The evolution of power in the global coffee value chain and production network," Journal of Economic Geography, Oxford University Press, vol. 19(4), pages 803-828.
    48. John Humphrey & Hubert Schmitz, 2002. "How does insertion in global value chains affect upgrading in industrial clusters?," Regional Studies, Taylor & Francis Journals, vol. 36(9), pages 1017-1027.
    49. Valentina De Marchi & Matthew Alford, 2022. "State policies and upgrading in global value chains: A systematic literature review," Journal of International Business Policy, Palgrave Macmillan, vol. 5(1), pages 88-111, March.
    50. Eve Fouilleux & Allison Loconto, 2017. "Voluntary standards, certification, and accreditation in the global organic agriculture field: a tripartite model of techno-politics," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 34(1), pages 1-14, March.
    51. Bergstrand, Jeffrey H. & Egger, Peter, 2007. "A knowledge-and-physical-capital model of international trade flows, foreign direct investment, and multinational enterprises," Journal of International Economics, Elsevier, vol. 73(2), pages 278-308, November.
    52. David Lambert & Shahera McKoy, 2009. "Trade Creation and Diversion Effects of Preferential Trade Associations on Agricultural and Food Trade," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(1), pages 17-39, February.
    53. Stephanie BARRIENTOS & Gary GEREFFI & Arianna ROSSI, 2011. "Economic and social upgrading in global production networks: A new paradigm for a changing world," International Labour Review, International Labour Organization, vol. 150(3-4), pages 319-340, December.
    54. Pipkin, Seth & Fuentes, Alberto, 2017. "Spurred to Upgrade: A Review of Triggers and Consequences of Industrial Upgrading in the Global Value Chain Literature," World Development, Elsevier, vol. 98(C), pages 536-554.
    55. Soeren Jeppesen & Michael W. Hansen, 2004. "Environmental upgrading of Third World enterprises through linkages to transnational corporations. Theoretical perspectives and preliminary evidence," Business Strategy and the Environment, Wiley Blackwell, vol. 13(4), pages 261-274, July.
    56. Rossi, Arianna, 2013. "Does Economic Upgrading Lead to Social Upgrading in Global Production Networks? Evidence from Morocco," World Development, Elsevier, vol. 46(C), pages 223-233.
    57. Mark Vicol & Niels Fold & Bill Pritchard & Jeffrey Neilson, 2019. "Global production networks, regional development trajectories and smallholder livelihoods in the Global South," Journal of Economic Geography, Oxford University Press, vol. 19(4), pages 973-993.
    58. Gereffi, Gary, 1999. "International trade and industrial upgrading in the apparel commodity chain," Journal of International Economics, Elsevier, vol. 48(1), pages 37-70, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wei-Xing Zhou & Yun-Shi Dai & Kiet Tuan Duong & Peng-Fei Dai, 2023. "The impact of the Russia-Ukraine conflict on the extreme risk spillovers between agricultural futures and spots," Papers 2310.16850, arXiv.org.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pasquali, Giovanni & Krishnan, Aarti & Alford, Matthew, 2021. "Multichain strategies and economic upgrading in global value chains: Evidence from Kenyan horticulture," World Development, Elsevier, vol. 146(C).
    2. Margareet Visser & Matthew Alford, 2024. "Governance and Power Across Intersecting Value Chains: The Case of South African Apples," Journal of Business Ethics, Springer, vol. 189(1), pages 69-86, January.
    3. Liena Kano & Eric W. K. Tsang & Henry Wai-chung Yeung, 2020. "Global value chains: A review of the multi-disciplinary literature," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 577-622, June.
    4. Rory Horner, 2022. "Global value chains, import orientation, and the state: South Africa’s pharmaceutical industry," Journal of International Business Policy, Palgrave Macmillan, vol. 5(1), pages 68-87, March.
    5. John C. Beghin & Miet Maertens & Johan Swinnen, 2017. "Nontariff Measures and Standards in Trade and Global Value Chains," World Scientific Book Chapters,in: Nontariff Measures and International Trade, chapter 2, pages 13-38 World Scientific Publishing Co. Pte. Ltd..
    6. John C. Beghin & Miet Maertens & Johan Swinnen, 2017. "Nontariff Measures and Standards in Trade and Global Value Chains," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 2, pages 13-38, World Scientific Publishing Co. Pte. Ltd..
    7. McWilliam, Sarah E. & Kim, Jung Kwan & Mudambi, Ram & Nielsen, Bo Bernhard, 2020. "Global value chain governance: Intersections with international business," Journal of World Business, Elsevier, vol. 55(4).
    8. Johanna Gammelgaard & Stine Haakonsson & Sine Nørholm Just, 2021. "Linking Malawi’s agricultural sector to global value chains: The case for community governance," Journal of International Business Policy, Palgrave Macmillan, vol. 4(4), pages 523-540, December.
    9. Eunkyung Park & Martin Kang’ethe Gachukia, 0. "The Role of the Local Innovation System for Inclusive Upgrading in the Global Value Chain: The Case of KenyaGAP in the Kenyan Horticultural Sector," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 0, pages 1-26.
    10. Eunkyung Park & Martin Kang’ethe Gachukia, 2021. "The Role of the Local Innovation System for Inclusive Upgrading in the Global Value Chain: The Case of KenyaGAP in the Kenyan Horticultural Sector," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(3), pages 578-603, June.
    11. Choksy, Umair Shafi & Ayaz, Muhammad & Al-Tabbaa, Omar & Parast, Mahour, 2022. "Supplier resilience under the COVID-19 crisis in apparel global value chain (GVC): The role of GVC governance and supplier’s upgrading," Journal of Business Research, Elsevier, vol. 150(C), pages 249-267.
    12. Pipkin, Seth & Fuentes, Alberto, 2017. "Spurred to Upgrade: A Review of Triggers and Consequences of Industrial Upgrading in the Global Value Chain Literature," World Development, Elsevier, vol. 98(C), pages 536-554.
    13. Lilac Nachum, 2021. "Value distribution and markets for social justice in global value chains: Interdependence relationships and government policy," Journal of International Business Policy, Palgrave Macmillan, vol. 4(4), pages 541-563, December.
    14. Matthew Alford & Margareet Visser & Stephanie Barrientos, 2021. "Southern actors and the governance of labour standards in global production networks: The case of South African fruit and wine," Environment and Planning A, , vol. 53(8), pages 1915-1934, November.
    15. Valentina De Marchi & Matthew Alford, 2022. "State policies and upgrading in global value chains: A systematic literature review," Journal of International Business Policy, Palgrave Macmillan, vol. 5(1), pages 88-111, March.
    16. Roman Jurowetzki & Rasmus Lema & Bengt-Åke Lundvall, 2018. "Combining Innovation Systems and Global Value Chains for Development: Towards a Research Agenda," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 364-388, July.
    17. Maertens, Miet & Swinnen, Johan, 2015. "Agricultural trade and development: A value chain perspective," WTO Staff Working Papers ERSD-2015-04, World Trade Organization (WTO), Economic Research and Statistics Division.
    18. Henry Wai-chung Yeung & Neil M. Coe, 2015. "Toward a Dynamic Theory of Global Production Networks," Economic Geography, Clark University, vol. 91(1), pages 29-58, January.
    19. Giovanni Pasquali & Matthew Alford, 2022. "Global value chains, private governance and multiple end-markets: insights from Kenyan leather," Journal of Economic Geography, Oxford University Press, vol. 22(1), pages 129-157.
    20. Peter Lund‐Thomsen & Lone Riisgaard & Sukhpal Singh & Shakil Ghori & Neil M. Coe, 2021. "Global Value Chains and Intermediaries in Multi‐stakeholder Initiatives in Pakistan and India," Development and Change, International Institute of Social Studies, vol. 52(3), pages 504-532, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jlands:v:11:y:2022:i:10:p:1864-:d:949046. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.