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Dynamic Changes and Effects of Agro-Food GVCS

Author

Listed:
  • Jared Greenville

    (OECD)

  • Kentaro Kawasaki

    (OECD)

  • Marie-Agnes Jouanjean

    (OECD)

Abstract

Global value chains (GVCs) in agriculture and food sectors are becoming an important part of the agro-food trading landscape, influencing both the nature of the gains from trade and the impacts of trade policies. This study explores the changes in trade in value added that are occurring within agro-food GVCs and the implications that participation in agro-food GVCs has had on the agro-food sectors. It makes use of a database on trade in value added for 22 agro-food sectors derived from the Global Trade Analysis Project (GTAP) database. The study finds that between 2004 and 2014, agro-food sectors have been increasing their participation in GVCs and that the links created within these production networks have become more “global” in nature. At the same time, agro-food GVCs have become increasingly centred around hubs in the People’s Republic of China and Germany where large amounts of value added are funnelled before reaching the end consumer. The study also finds that participation in agro-food GVCs is beneficial for sector development and growth – both in aggregate terms and in terms of domestic value added from exports. Of key importance has been the use of foreign value added and access to a wide diversity of imported inputs. However, policies that restrict trade and limit market openness reduce participation and sector growth and development – including policies that create barriers to trade in agro-food products themselves. In addition, the study finds that the use of services value added in exports is an important factor that contributes to sector growth, which highlights the importance of the broader policy environment to enhance the benefits from agro-food GVCs.

Suggested Citation

  • Jared Greenville & Kentaro Kawasaki & Marie-Agnes Jouanjean, 2019. "Dynamic Changes and Effects of Agro-Food GVCS," OECD Food, Agriculture and Fisheries Papers 119, OECD Publishing.
    • Handle: RePEc:oec:agraaa:119-en
    DOI: 10.1787/43b7bcec-en
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    Cited by:

    1. Montalbano, Pierluigi & Nenci, Silvia, 2022. "Does global value chain participation and positioning in the agriculture and food sectors affect economic performance? A global assessment," Food Policy, Elsevier, vol. 108(C).

    More about this item

    Keywords

    agricultural trade; Agriculture; global value chains; GTAP; multi-regional output;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F60 - International Economics - - Economic Impacts of Globalization - - - General
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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