IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i3p2673-d1054852.html
   My bibliography  Save this article

Services Development, Technological Innovation, and the Embedded Location of the Agricultural Global Value Chain

Author

Listed:
  • Ying Chen

    (School of Economics & Trade, Hunan University, Changsha 410006, China)

  • Yabin Zhang

    (School of Economics & Trade, Hunan University, Changsha 410006, China)

Abstract

This study aimed to examine the impact of services development and technological innovation on the embedded location of the agricultural global value chain (GVC), and the interaction between the two in fifty-seven countries (regions) around the world. This study constructed an econometric model for empirical testing based on theoretical analysis. The results showed that services development and technological innovation contributed to the embedded location of the agricultural GVC, and there was a significant substitution effect between them. A sub-group test for different income levels showed that the influence of services development and technological innovation on the embedded location of the agricultural GVC was positive in high-income and upper-middle-income countries (regions), while their influence on the embedded location of the agricultural GVC was negative in lower-middle-income countries (regions). A significant substitution effect between services development and technological innovation is always present. Quantile regression results showed that the influence of services development on the embedded location of the agricultural GVC was significantly positive at all quantile points, but the significant influence of technological innovation and the interaction between the two on the embedded location of the agricultural GVC was mainly concentrated in the low and middle quantile points. From the perspective of services development and technological innovation, this study applied the analysis framework and research methods of the global value chain to the analysis of the global agricultural value chain, expanded the research scope of the global value chain, and provided a theoretical basis for countries (regions) to further deepen their agricultural global production network and agricultural GVC.

Suggested Citation

  • Ying Chen & Yabin Zhang, 2023. "Services Development, Technological Innovation, and the Embedded Location of the Agricultural Global Value Chain," Sustainability, MDPI, vol. 15(3), pages 1-14, February.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:3:p:2673-:d:1054852
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/3/2673/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/3/2673/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Robert Koopman & Zhi Wang & Shang-Jin Wei, 2014. "Tracing Value-Added and Double Counting in Gross Exports," American Economic Review, American Economic Association, vol. 104(2), pages 459-494, February.
    2. Andrin Spescha & Martin Woerter, 2019. "Innovation and firm growth over the business cycle," Industry and Innovation, Taylor & Francis Journals, vol. 26(3), pages 321-347, March.
    3. Holger Görg & David Greenaway, 2016. "Much Ado about Nothing? Do Domestic Firms Really Benefit from Foreign Direct Investment?," World Scientific Book Chapters, in: MULTINATIONAL ENTERPRISES AND HOST COUNTRY DEVELOPMENT Volume 53: World Scientific Studies in International Economics, chapter 9, pages 163-189, World Scientific Publishing Co. Pte. Ltd..
    4. 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).
    5. Johan Bastiaensen & Peter Marchetti, 2011. "Rural Microfinance and Agricultural Value Chains: Strategies and Perspectives of the Fondo de Desarrollo Local in Nicaragua," World Scientific Book Chapters, in: Beatriz Armendáriz & Marc Labie (ed.), The Handbook Of Microfinance, chapter 22, pages 461-500, World Scientific Publishing Co. Pte. Ltd..
    6. Joao Gaspar & Gilson Pina & Marta Simoes, 2014. "Agriculture in Portugal: linkages with industry and services," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 95(4), pages 437-471.
    7. 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.
    8. C. Dolan & J. Humphrey, 2000. "Governance and Trade in Fresh Vegetables: The Impact of UK Supermarkets on the African Horticulture Industry," Journal of Development Studies, Taylor & Francis Journals, vol. 37(2), pages 147-176.
    9. Yeaple, Stephen Ross, 2003. "The complex integration strategies of multinationals and cross country dependencies in the structure of foreign direct investment," Journal of International Economics, Elsevier, vol. 60(2), pages 293-314, August.
    10. Marcel P. Timmer & Bart Los & Robert Stehrer & Gaaitzen J. de Vries, 2013. "Fragmentation, incomes and jobs: an analysis of European competitiveness [Who captures value in global supply chains?]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 28(76), pages 613-661.
    11. Gaoju Yang & Yilu Zhang & Xiao Yu, 2020. "Intellectual property rights and the upgrading of the global value chain status," Pacific Economic Review, Wiley Blackwell, vol. 25(2), pages 185-204, May.
    12. 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.
    13. Hausmann, Ricardo & Rodrik, Dani, 2003. "Economic development as self-discovery," Journal of Development Economics, Elsevier, vol. 72(2), pages 603-633, December.
    14. Reena das Nair & Namhla Landani, 2020. "Making agricultural value chains more inclusive through technology and innovation," WIDER Working Paper Series wp-2020-38, World Institute for Development Economic Research (UNU-WIDER).
    15. Steve Wiggins, 2014. "African Agricultural Development: Lessons and Challenges," Journal of Agricultural Economics, Wiley Blackwell, vol. 65(3), pages 529-556, September.
    16. Dani Rodrik, 2018. "New Technologies, Global Value Chains, and the Developing Economies," CESifo Working Paper Series 7307, CESifo.
    17. repec:oup:ecpoli:v:28:y:2013:i:76:p:613-661 is not listed on IDEAS
    18. Mitsuyo Ando & Kazunobu Hayakawa, 2022. "Does the import diversity of inputs mitigate the negative impact of COVID-19 on global value chains?," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 31(2), pages 299-320, February.
    19. Bilbao-Ubillos, Javier & Camino-Beldarrain, Vicente, 2021. "Reconfiguring global value chains in a post-Brexit world: A technological interpretation," Technology in Society, Elsevier, vol. 67(C).
    20. Mano, Yukichi & Yamano, Takashi & Suzuki, Aya & Matsumoto, Tomoya, 2011. "Local and Personal Networks in Employment and the Development of Labor Markets: Evidence from the Cut Flower Industry in Ethiopia," World Development, Elsevier, vol. 39(10), pages 1760-1770.
    21. Sharmistha Self & Richard Grabowski, 2007. "Economic development and the role of agricultural technology," Agricultural Economics, International Association of Agricultural Economists, vol. 36(3), pages 395-404, May.
    22. Possas, Mario Luiz & Salles-Filho, Sergio & da Silveira, JoseMaria, 1996. "An evolutionary approach to technological innovation in agriculture: some preliminary remarks," Research Policy, Elsevier, vol. 25(6), pages 933-945, September.
    23. Paul Krugman, 1995. "Growing World Trade: Causes and Consequences," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(1, 25th A), pages 327-377.
    24. Zhi Wang & Shang-Jin Wei & Xinding Yu & Kunfu Zhu, 2017. "Measures of Participation in Global Value Chains and Global Business Cycles," NBER Working Papers 23222, National Bureau of Economic Research, Inc.
    25. 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.
    26. Catherine Dolan & John Humphrey, 2004. "Changing Governance Patterns in the Trade in Fresh Vegetables between Africa and the United Kingdom," Environment and Planning A, , vol. 36(3), pages 491-509, March.
    27. Koopman, Robert & Wang, Zhi & Wei, Shang-Jin, 2012. "Estimating domestic content in exports when processing trade is pervasive," Journal of Development Economics, Elsevier, vol. 99(1), pages 178-189.
    28. Robert Koopman & William Powers & Zhi Wang & Shang-Jin Wei, 2010. "Give Credit Where Credit Is Due: Tracing Value Added in Global Production Chains," NBER Working Papers 16426, National Bureau of Economic Research, Inc.
    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. Wenqi Li & Qi Li & Ming Chen & Yutong Su & Jianhua Zhu, 2023. "Global Value Chains, Digital Economy, and Upgrading of China’s Manufacturing Industry," Sustainability, MDPI, vol. 15(10), pages 1-25, May.

    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. 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.
    3. Can Li & Qi He & Han Ji, 2023. "Can Global Value Chain Upgrading Promote Regional Economic Growth? Empirical Evidence and Mechanism Analysis Based on City-Level Panel Data in China," Sustainability, MDPI, vol. 15(15), pages 1-22, July.
    4. 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).
    5. Wen Chen & Lizhi Xing, 2022. "Measuring the Intermediate Goods’ External Dependency on the Global Value Chain: A Case Study of China," Sustainability, MDPI, vol. 14(7), pages 1-21, April.
    6. Li, Meng & Gao, Yuning & Meng, Bo & Meng, Jing, 2023. "Tracing embodied energy use through global value chains: Channel decomposition and analysis of influential factors," Ecological Economics, Elsevier, vol. 208(C).
    7. Liu, Xuepeng & Mattoo, Aaditya & Wang, Zhi & Wei, Shang-Jin, 2020. "Services development and comparative advantage in manufacturing," Journal of Development Economics, Elsevier, vol. 144(C).
    8. Aleksandra Parteka & Joanna Wolszczak-Derlacz, 2019. "Global Value Chains and Wages: Multi-Country Evidence from Linked Worker-Industry Data," Open Economies Review, Springer, vol. 30(3), pages 505-539, July.
    9. Jingjing Huang & Yuan Zhong & Yabin Zhang, 2023. "Does Environmental Regulation of Cleaner Production Affect the Position of Enterprises in Global Value Chains? A Quasi-Natural Experiment Based on the Implementation of Cleaner Production," Sustainability, MDPI, vol. 15(13), pages 1-29, July.
    10. Yan, Bingqian & Xia, Yan & Jiang, Xuemei, 2023. "Carbon productivity and value-added generations: Regional heterogeneity along global value chain," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 111-125.
    11. Victor Kummritz, 2015. "Global Value Chains: Benefiting the Domestic Economy?," IHEID Working Papers 02-2015, Economics Section, The Graduate Institute of International Studies.
    12. Chen, Quanrun & Chen, Xikang & Pei, Jiansuo & Yang, Cuihong & Zhu, Kunfu, 2020. "Estimating domestic content in China’s exports: Accounting for a dual-trade regime," Economic Modelling, Elsevier, vol. 89(C), pages 43-54.
    13. Maria Savona, 2021. "Revisiting High Development Theory to Explain Upgrading Prospects in Business Services Global Value Chains," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(2), pages 206-226, April.
    14. João Amador & Rita Cappariello & Robert Stehrer, 2015. "Global Value Chains: A View from the Euro Area," Asian Economic Journal, East Asian Economic Association, vol. 29(2), pages 99-120, June.
    15. Upward, Richard & Wang, Zheng & Zheng, Jinghai, 2013. "Weighing China’s export basket: The domestic content and technology intensity of Chinese exports," Journal of Comparative Economics, Elsevier, vol. 41(2), pages 527-543.
    16. Veenendaal, Paul, 2013. "Trade Redirection in Global Supply Chains," Conference papers 332324, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    17. Biswajit Banerjee & Juraj Zeman, 2022. "Determinants of global value chain participation: cross-country analysis," Indian Economic Review, Springer, vol. 57(1), pages 59-95, June.
    18. Bullón, David & Mena, Tayutic & Meng, Bo & Sánchez, Natalia & Vargas, Henry & Inomata, Satoshi, 2015. "Using the input-output approach to measure participation in GVCs : the case of Costa Rica," IDE Discussion Papers 529, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    19. Chiara Criscuolo & Jonathan Timmis, 2017. "The Relationship Between Global Value Chains and Productivity," International Productivity Monitor, Centre for the Study of Living Standards, vol. 32, pages 61-83, Spring.
    20. Chao Wang & Wenyu Zhang & Bing Li, 2023. "Analysis of Country Economic Growth Based on Industries Chain Position," Sustainability, MDPI, vol. 15(21), pages 1-15, November.

    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:jsusta:v:15:y:2023:i:3:p:2673-:d:1054852. 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.