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Global Agricultural Value Chains and Structural Transformation

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  • Sunghun Lim

Abstract

Since the mid-1900s, agricultural global value chains (AGVCs) have grown rapidly and transformed the nature of agri-food production around the world. Little is known, however, about how participation in AGVCs changes the structure of participating economies. Using a constructed panel dataset from 155 countries for the period 1991-2015, I find that, in response to high AGVC participation, both GDP and employment shares in the agricultural and services sectors increase, and that both factors decrease in the manufacturing sector. Counter to conventional wisdom about structural transformation, I uncover evidence that modern agrarian economies are leapfrogging the manufacturing sector to directly develop their agriculture and services sectors through their participation in AGVCs.

Suggested Citation

  • Sunghun Lim, 2021. "Global Agricultural Value Chains and Structural Transformation," NBER Working Papers 29194, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:29194
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    Cited by:

    1. Kim, Dongin & Steinbach, Sandro & Zurita, Carlos, 2024. "Deep trade agreements and agri-food global value chain integration," Food Policy, Elsevier, vol. 127(C).
    2. Hashad, Reem & Lim, Sunghun & Abay, Kibrom A., 2024. "Global food value chains and obesity in low- and middle-income countries," Food Policy, Elsevier, vol. 127(C).
    3. Zdráhal, Ivo, 2024. "The Revealed Comparative Advantage of Agri-Food Industries in Selected Countries in the Central and Eastern Europe: Gross-Versus Value-Added Trade Flows," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 16(2), June.
    4. Awokuse, Titus & Lim, Sunghun & Santeramo, Fabio & Steinbach, Sandro, 2024. "Robust policy frameworks for strengthening the resilience and sustainability of agri-food global value chains," Food Policy, Elsevier, vol. 127(C).
    5. Beck,Anne Helene & Lim, Sunghun & Taglioni,Daria, 2024. "Understanding Firm Networks in Global Agricultural Value Chains," Policy Research Working Paper Series 10774, The World Bank.
    6. Beck, Anne & Lim, Sunghun & Taglioni, Daria, 2024. "Understanding firm networks in global agricultural value chains," Food Policy, Elsevier, vol. 127(C).
    7. Ahn, Soojung & Steinbach, Sandro, 2022. "COVID-19 Trade Actions and Their Impact on the Agricultural and Food Sector," 2022 Allied Social Sciences Association (ASSA) Annual Meeting (Virtual), January 7-9, 2022 316789, Agricultural and Applied Economics Association.
    8. Tabe-Ojong, Martin Paul Jr. & Nana, Ibrahim & Zimmermann, Andrea & Jafari, Yaghoob, 2024. "Trends and evolution of global value chains in food and agriculture: Implications for food security and nutrition," Food Policy, Elsevier, vol. 127(C).
    9. Soojung Ahn & Sandro Steinbach, 2023. "The impact of COVID‐19 trade measures on agricultural and food trade," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(2), pages 911-927, June.
    10. Bangkit A. Wiryawan & Christian Otchia, 2022. "The legacy of the reformasi: the role of local government spending on industrial development in a decentralized Indonesia," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 11(1), pages 1-19, December.
    11. Bellemare, Marc F., 2022. "Agricultural value chains: towards a marriage of development economics and industrial organisation?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 66(02), January.

    More about this item

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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