IDEAS home Printed from https://ideas.repec.org/a/plo/pone00/0289128.html

Impact of economic globalisation on value-added agriculture, globally

Author

Listed:
  • Nadeena Sansika
  • Raveesha Sandumini
  • Chamathka Kariyawasam
  • Tharushi Bandara
  • Krishantha Wisenthige
  • Ruwan Jayathilaka

Abstract

Economic globalisation is the integration of national economies into the global economy through the increasing flow of goods, services, capital, and technology across borders and it has contributed to garnering a significant portion of most nations’ national income, although its agricultural value-added aspect has yet to be maximised. This pioneering study explores the impact of economic globalisation on value-added agriculture in a global context based on countries’ income levels. Panel data regression with the stepwise method was employed to quantify the impact of economic globalization on agriculture value added in 101 countries between 2000 and 2021. The findings of our study reveal that economic globalisation, through various channels such as fertilizer consumption, employment in agriculture, agriculture raw materials export and import, exchange rate, and foreign direct investment, significantly influences the agricultural value-added factor globally and across different income levels. Furthermore, the results show that agricultural employment significantly impacts the agricultural value-added factor globally and across all income levels. Also, countries with low and lower-middle-income levels significantly affect agricultural value-added due to exchange rates. In comparison, high-income and lower-middle-income levels have an impact due to foreign direct investment. Finally, the upper-middle-income countries have significantly affected agricultural value-added due to agricultural raw materials imports. This study confirms that employment in agriculture, exchange rate and foreign direct investments positively impact agriculture value-added on the global level and based on the income level of countries.

Suggested Citation

  • Nadeena Sansika & Raveesha Sandumini & Chamathka Kariyawasam & Tharushi Bandara & Krishantha Wisenthige & Ruwan Jayathilaka, 2023. "Impact of economic globalisation on value-added agriculture, globally," PLOS ONE, Public Library of Science, vol. 18(7), pages 1-26, July.
    • Handle: RePEc:plo:pone00:0289128
    DOI: 10.1371/journal.pone.0289128
    as

    Download full text from publisher

    File URL: https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0289128
    Download Restriction: no
    File URL: https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0289128&type=printable
    Download Restriction: no
    File URL: https://libkey.io/10.1371/journal.pone.0289128?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Aqib, Muhammad & Zaman, Khalid, 2023. "Greening the Workforce: The Power of Investing in Human Capital," MPRA Paper 116263, University Library of Munich, Germany, revised 05 Feb 2023.
    2. Asif Raihan, 2023. "An econometric evaluation of the effects of economic growth, energy use, and agricultural value added on carbon dioxide emissions in Vietnam," Asia-Pacific Journal of Regional Science, Springer, vol. 7(3), pages 665-696, September.
    3. Usman, Muhammad & Makhdum, Muhammad Sohail Amjad, 2021. "What abates ecological footprint in BRICS-T region? Exploring the influence of renewable energy, non-renewable energy, agriculture, forest area and financial development," Renewable Energy, Elsevier, vol. 179(C), pages 12-28.
    4. Sophia Murphy, 2008. "Globalization and Corporate Concentration in the Food and Agriculture Sector," Development, Palgrave Macmillan;Society for International Deveopment, vol. 51(4), pages 527-533, December.
    5. Minh Quang Dao, 2009. "Poverty, income distribution, and agriculture in developing countries," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 36(2), pages 168-183, May.
    6. Yung-Hsiang Ying & Koyin Chang & Chen-Hsun LEE, 2014. "The Impact of Globalization on Economic Growth," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 25-34, June.
    7. 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.
    8. Linus Nyiwul & Niraj P. Koirala, 2022. "Role of foreign direct investments in agriculture, forestry and fishing in developing countries," Future Business Journal, Springer, vol. 8(1), pages 1-12, December.
    9. Christy, Ralph D. & Connor, John M., 1989. "Economic Forces Influencing Value-Added Food Industries: Implications for Southern Agriculture," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 21(1), pages 13-22, July.
    10. Zaman, Khalid, 2023. "A Note on Cross-Panel Data Techniques," MPRA Paper 116119, University Library of Munich, Germany, revised 15 Jan 2023.
    11. Licai Lv & Simei Wen & Qiquan Xiong, 2010. "Determinants and performance index of foreign direct investment in China's agriculture," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 2(1), pages 36-48, February.
    12. Minh Quang Dao, 2009. "Poverty, income distribution, and agriculture in developing countries," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 36(2), pages 168-183, May.
    13. Etian Ngobeni & Chiedza L. Muchopa, 2022. "The Impact of Government Expenditure in Agriculture and Other Selected Variables on the Value of Agricultural Production in South Africa (1983–2019): Vector Autoregressive Approach," Economies, MDPI, vol. 10(9), pages 1-17, August.
    14. Alper Guzel, H. & Kulshreshtha, Surendra N., 1995. "Effects of real exchange rate changes on Canadian agriculture: A general equilibrium evaluation," Journal of Policy Modeling, Elsevier, vol. 17(6), pages 639-657, December.
    15. John C Anyanwu & Joanna C Anyanwu, 2018. "Accounting for the Rising Value Added in Services Compared to That in Agriculture in African Economies," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 6(4), pages 476-500.
    16. Chi Aloysius Ngong & Kesuh Jude Thaddeus & Lionel Tembi Asah & Godwin Imo Ibe & Josaphat Uchechukwu Joe Onwumere, 2022. "Stock market development and agricultural growth of emerging economies in Africa," Journal of Capital Markets Studies, Emerald Group Publishing Limited, vol. 6(2), pages 185-202, February.
    17. Scobie, Grant M. & Jardine, Veronica & Greene, Duty D., 1991. "The importance of trade and exchange rate policies for agriculture in Ecuador," Food Policy, Elsevier, vol. 16(1), pages 34-47, February.
    18. Agus Dwi Nugroho & Zoltan Lakner, 2022. "Impact of economic globalisation on agriculture in developing countries: A review," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 68(5), pages 180-188.
    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. Wu, Guoyong & Gao, Yue & Feng, Yanchao, 2023. "Assessing the environmental effects of the supporting policies for mineral resource-exhausted cities in China," Resources Policy, Elsevier, vol. 85(PB).
    2. Jiang, Wanxing & Gao, Han, 2023. "The nexus between natural resources and exports of goods and services in the OECD countries," Resources Policy, Elsevier, vol. 85(PA).
    3. Wang, Haiyan & Lei, Zhaoyang, 2023. "Energy supply from oil and gas, mineral depletion, and total natural resource rents: Impact of oil equivalent energy use CO2 intensity," Resources Policy, Elsevier, vol. 86(PB).
    4. Shen, Qiong & Pan, Yuxi & Meng, Xiangxu & Ling, Xiao & Hu, Shilei & Feng, Yanchao, 2023. "How does the transition policy of mineral resource-exhausted cities affect the process of industrial upgrading? New empirical evidence from China," Resources Policy, Elsevier, vol. 86(PB).
    5. Liu, Chengyi & Zhang, Luzi & Wu, Fan & Xia, Ruoxuan, 2024. "Role of sustainable management policy and carbon neutral processes in improving sustainable performance: Study of China's aluminium sector," Resources Policy, Elsevier, vol. 88(C).
    6. Imran, Muhammad & Shah, Syed Tahir Hussain & Asif, Muhammad & Ahmad, Ishfaq & Zaman, Khalid, 2025. "Asymmetric impacts of outward foreign investment flows and green energy demand on global carbon emissions: evidence from the world's top five emitters," Innovation and Green Development, Elsevier, vol. 4(5).
    7. He, Yude & Wang, Sha & Chen, Na, 2024. "Mineral rents, natural resources depletion, and ecological footprint nexus in high emitting countries: Panel GLM analysis," Resources Policy, Elsevier, vol. 89(C).
    8. Zhao, Tong, 2023. "The impact of financial inclusion and natural resource endowment on China's carbon emissions in the post-covid-19 period," Resources Policy, Elsevier, vol. 86(PB).
    9. Kundu, Srikanta & Kundu, Ruma & Chettri, Kul Bahadur, 2024. "Asymmetric effects of democracy and macroeconomic factors on happiness under high and low per capita incomes: A threshold panel analysis," Ecological Economics, Elsevier, vol. 216(C).
    10. Pham Thi, Thuy Dung & Do, Hai Dung & Paramaiah, Ch & Duong, Nam Tien & Pham, Van Kien & Shamansurova, Zilola, 2023. "Sustainable economic performance and natural resource price volatility in the post-covid-pandemic: Evidence using GARCH models in Chinese context," Resources Policy, Elsevier, vol. 86(PA).
    11. Pata, Ugur Korkut & Destek, Mehmet Akif & Manga, Muge & Cengiz, Orhan, 2022. "Militarization of NATO Countries Sparks Climate Change? Investigating the Moderating Role of Technological Progress and Financial Development," MPRA Paper 117567, University Library of Munich, Germany.
    12. Li, Jie & Cheng, Pengfei & Qian, Xingyue, 2023. "Do mineral rents endowment and agricultural raw material imports determine natural resource management in the United States?," Resources Policy, Elsevier, vol. 85(PA).
    13. Si Mohammed, Kamel & Khalfaoui, Rabeh & Doğan, Buhari & Sharma, Gagan Deep & Mentel, Urszula, 2023. "The reaction of the metal and gold resource planning in the post-COVID-19 era and Russia-Ukrainian conflict: Role of fossil fuel markets for portfolio hedging strategies," Resources Policy, Elsevier, vol. 83(C).
    14. Yu, Donglei & Wenhui, Xiong & Anser, Muhammad Khalid & Nassani, Abdelmohsen A. & Imran, Muhammad & Zaman, Khalid & Haffar, Mohamed, 2023. "Navigating the global mineral market: A study of resource wealth and the energy transition," Resources Policy, Elsevier, vol. 82(C).
    15. Kang, Han & Li, Le & Feng, Jin, 2023. "Are natural resources a hindrance to ecological footprint? Mineral rents, energy production, and consumption positions," Resources Policy, Elsevier, vol. 86(PA).
    16. Ullah, Sami & Lin, Boqiang, 2024. "Harnessing the synergistic impacts of financial structure, industrialization, and ecological footprint through the lens of the EKC hypothesis. Insights from Pakistan," Energy, Elsevier, vol. 307(C).
    17. Cristian Antonio Pedraza-Yepes & Kevin Enrique Berdugo-Rolong & Daniel Eduardo Ruiz-Muñoz & Oscar Fabián Higuera-Cobos & José Daniel Hernández-Vásquez, 2023. "Feasibility Study for the Implementation of Photovoltaic Panels in Public Transportation in Barranquilla," Energies, MDPI, vol. 16(20), pages 1-28, October.
    18. Jiang, Yihuo & Ni, Hongliang & Ni, Yihan & Guo, Xiaomei, 2023. "Assessing environmental, social, and governance performance and natural resource management policies in China's dual carbon era for a green economy," Resources Policy, Elsevier, vol. 85(PB).
    19. Bolotova, Yuliya V., 2016. "Food Manufacturing Industry in South Carolina: An Analysis of the Size, Structure, and Performance," Journal of Food Distribution Research, Food Distribution Research Society, vol. 47(01), pages 1-6, March.
    20. Mukhtarov, Shahriyar & Yüksel, Serhat & Dinçer, Hasan, 2022. "The impact of financial development on renewable energy consumption: Evidence from Turkey," Renewable Energy, Elsevier, vol. 187(C), pages 169-176.

    More about this item

    Statistics

    Access and download statistics

    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:plo:pone00:0289128. 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: plosone (email available below). General contact details of provider: https://journals.plos.org/plosone/ .

    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.