IDEAS home Printed from https://ideas.repec.org/a/gam/jagris/v13y2023i11p2151-d1280684.html
   My bibliography  Save this article

The Impact of Agricultural Global Value Chain Participation on Agricultural Total Factor Productivity

Author

Listed:
  • Defeng Zhang

    (Institute of Agricultural Economics and Development, Chinese Academy of Agricultural Sciences, Beijing 100081, China
    School of Economics, Sichuan University, Chengdu 610065, China)

  • Zhilu Sun

    (Institute of Agricultural Economics and Development, Chinese Academy of Agricultural Sciences, Beijing 100081, China)

Abstract

Under the condition of opening up, participation in international specialization and global value chains (GVCs) has become the main source for more and more countries to obtain foreign resources and advanced technologies, thereby promoting productivity improvement and technological progress. What are the pathways of agricultural GVC participation that affect agricultural total factor productivity (TFP)? Is the impact of agricultural GVC participation on agricultural TFP consistent across different statuses and modes of agricultural GVC participation? This paper elaborates on the theoretical mechanism of agricultural GVC participation affecting agricultural TFP, and then empirically estimates the impact of different statuses and modes of agricultural GVC participation on agricultural TFP by taking 58 countries as examples. The results show that agricultural GVCs affect agricultural TFP by several direct and indirect pathways. There was a U-shaped relationship between agricultural GVC participation and agricultural TFP, which means that after crossing a certain threshold, the former has a positive impact on the latter. By participating in agricultural GVCs, agricultural TFP in high-income and upper-middle-income countries was significantly improved, while in lower-middle-income countries it was not. Both forward and backward agricultural GVC participation were conducive to improving agricultural TFP in high-income and upper-middle-income countries, but only backward agricultural GVC participation was conducive to improving agricultural TFP in lower-middle-income countries. Therefore, every country needs to actively explore its optimal pathway to participate in agricultural GVCs in order to maximize the participation benefits and promote the improvement in agricultural TFP, simultaneously.

Suggested Citation

  • Defeng Zhang & Zhilu Sun, 2023. "The Impact of Agricultural Global Value Chain Participation on Agricultural Total Factor Productivity," Agriculture, MDPI, vol. 13(11), pages 1-20, November.
    • Handle: RePEc:gam:jagris:v:13:y:2023:i:11:p:2151-:d:1280684
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2077-0472/13/11/2151/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2077-0472/13/11/2151/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jan Fagerberg & Bengt-Åke Lundvall & Martin Srholec, 2018. "Global Value Chains, National Innovation Systems and Economic Development," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 533-556, July.
    2. Alexandre Gazaniol & Frédéric Peltrault, 2013. "Outward FDI, performance and group affiliation: evidence from French matched firms," Economics Bulletin, AccessEcon, vol. 33(2), pages 891-904.
    3. Arne J. Nagengast & Robert Stehrer, 2016. "Accounting for the Differences Between Gross and Value Added Trade Balances," The World Economy, Wiley Blackwell, vol. 39(9), pages 1276-1306, September.
    4. repec:dau:papers:123456789/11774 is not listed on IDEAS
    5. Brandt, Loren & Thun, Eric, 2010. "The Fight for the Middle: Upgrading, Competition, and Industrial Development in China," World Development, Elsevier, vol. 38(11), pages 1555-1574, November.
    6. Cristina Constantinescu & Aaditya Mattoo & Michele Ruta, 2019. "Does vertical specialisation increase productivity?," The World Economy, Wiley Blackwell, vol. 42(8), pages 2385-2402, August.
    7. Joonkoo Lee & Gary Gereffi, 2013. "The co-evolution of concentration in mobile phone global value chains and its impact on social upgrading in developing countries," Global Development Institute Working Paper Series ctg-2013-25, GDI, The University of Manchester.
    8. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "Multilateral Comparisons of Output, Input, and Productivity Using Superlative Index Numbers," Economic Journal, Royal Economic Society, vol. 92(365), pages 73-86, March.
    9. Hummels, David & Ishii, Jun & Yi, Kei-Mu, 2001. "The nature and growth of vertical specialization in world trade," Journal of International Economics, Elsevier, vol. 54(1), pages 75-96, June.
    10. Junli Zhao & Vigdis Boasson, 2015. "Productivity Gains from Offshore Outsourcing: Evidence from the Chinese Manufacturing Industry," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 23(5), pages 104-122, September.
    11. Wang, Zhi & Gehlhar, Mark & Yao, Shunli, 2010. "A globally consistent framework for reliability-based trade statistics reconciliation in the presence of an entrepôt," China Economic Review, Elsevier, vol. 21(1), pages 161-189, March.
    Full references (including those not matched with items on IDEAS)

    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. Nenci, Silvia & Fusacchia, Ilaria & Giunta, Anna & Montalbano, Pierluigi & Pietrobelli, Carlo, 2022. "Mapping global value chain participation and positioning in agriculture and food: stylised facts, empirical evidence and critical issues," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 11(2), July.
    2. 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).
    3. F. Colozza & R. Boschma & A. Morrison & C. Pietrobelli, 2021. "The importance of global value chains and regional capabilities for the economic complexity of EU-regions," Papers in Evolutionary Economic Geography (PEEG) 2139, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Dec 2021.
    4. Halit Yanikkaya & Abdullah Altun, 2020. "The Impact of Global Value Chain Participation on Sectoral Growth and Productivity," Sustainability, MDPI, vol. 12(12), pages 1-19, June.
    5. Tsakanikas, Aggelos & Roth, Felix & Caliò, Simone & Caloghirou, Yannis & Dimas, Petros, 2020. "The contribution of intangible inputs and participation in global value chains to productivity performance – Evidence from the EU-28, 2000-2014," Hamburg Discussion Papers in International Economics 5, University of Hamburg, Department of Economics.
    6. Gideon Ndubuisi & Solomon Owusu, 2021. "How important is GVC participation to export upgrading?," The World Economy, Wiley Blackwell, vol. 44(10), pages 2887-2908, October.
    7. Stefan Pahl & Marcel P. Timmer, 2020. "Do Global Value Chains Enhance Economic Upgrading? A Long View," Journal of Development Studies, Taylor & Francis Journals, vol. 56(9), pages 1683-1705, July.
    8. Arne J. Nagengast & Robert Stehrer, 2016. "Accounting for the Differences Between Gross and Value Added Trade Balances," The World Economy, Wiley Blackwell, vol. 39(9), pages 1276-1306, September.
    9. Inaki Arto & Erik Dietzenbacher & Jose Manuel Rueda-Cantuche, 2019. "Measuring bilateral trade in terms of value added," JRC Research Reports JRC116694, Joint Research Centre.
    10. Álvaro Lalanne, 2021. "Measuring value circulation in regional chains: assessing two alternative methods in South America," Documentos de Trabajo (working papers) 0621, Department of Economics - dECON.
    11. Pleticha, Petr, 2021. "Who Benefits from Global Value Chain Participation? Does Functional Specialization Matter?," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 291-299.
    12. Bhushan Praveen Jangam & Badri Narayan Rath, 2021. "Do global value chains enhance or slog economic growth?," Applied Economics, Taylor & Francis Journals, vol. 53(36), pages 4148-4165, August.
    13. João Amador & Sónia Cabral, 2017. "Networks of Value-added Trade," The World Economy, Wiley Blackwell, vol. 40(7), pages 1291-1313, July.
    14. Arne J. Nagengast & Robert Stehrer, 2016. "The Great Collapse in Value Added Trade," Review of International Economics, Wiley Blackwell, vol. 24(2), pages 392-421, May.
    15. Silvia Fabiani & Alberto Felettigh & Alfonso Rosolia, 2023. "Foreign Value Added along the Consumption Distribution," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 9(1), pages 35-60, March.
    16. Bhushan Praveen Jangam & Badri Narayan Rath, 2020. "Cross-country convergence in global value chains: Evidence from club convergence analysis," International Economics, CEPII research center, issue 163, pages 134-146.
    17. Pao‐Li Chang & Phuong T. B. Nguyen, 2022. "Global value chains and the CPTPP," The World Economy, Wiley Blackwell, vol. 45(12), pages 3780-3832, December.
    18. Bhushan Praveen Jangam & Hari Venkatesh, 2022. "Global Value Chains and Exchange Rate Disconnect," Economic Papers, The Economic Society of Australia, vol. 41(4), pages 347-359, December.
    19. Gideon Ndubuisi & Solomon Owusu, 2023. "Trade for catch-up: examining how global value chains participation affects productive efficiency," Journal of Productivity Analysis, Springer, vol. 59(2), pages 195-215, April.
    20. Rodrigo Morales-López & Luis Quintana-Romero & Nam Kwon Mun & Inhye Oh, 2023. "Examining the Bilateral Relationship between Mexico and South Korea through the Trade in Value-Added Perspective, 2000–2021," Mathematics, MDPI, vol. 11(15), pages 1-24, July.

    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:jagris:v:13:y:2023:i:11:p:2151-:d:1280684. 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.