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How policies shape global food and agriculture value chains

Author

Listed:
  • Jared Greenville
  • Kentaro Kawasaki

    (OECD)

  • Raphaël Beaujeu

Abstract

Global value chains (GVCs) have changed the nature of production and specialisation around the world, including in agriculture and food sectors. This study takes an in-depth look at the landscape of agro-food GVCs and explores the factors that influence GVC participation by making use of a newly developed database on trade in value added for 20 agro-food sectors derived from the Global Trade Analysis Project (GTAP) database. The study also explores the benefits of GVC participation, viewed through the lens of domestic value added creation and employment, with a focus on the policy factors that influence these benefits. The study points to considerable variation in GVC participation across agro-food sectors, driven not only by product characteristics but also by policy factors related to trade and investment, the agricultural enabling environment and policies influencing service markets. The study shows that for agro-food sectors, trade barriers act as a tax on exports, reducing the domestic value added created from participation in agro-food GVCs.

Suggested Citation

  • Jared Greenville & Kentaro Kawasaki & Raphaël Beaujeu, 2017. "How policies shape global food and agriculture value chains," OECD Food, Agriculture and Fisheries Papers 100, OECD Publishing.
    • Handle: RePEc:oec:agraaa:100-en
    DOI: 10.1787/aaf0763a-en
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    Citations

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    Cited by:

    1. Hosoe, Nobuhiro & Akune, Yuko, 2020. "Can the Japanese agri-food producers survive under freer trade? A general equilibrium analysis with farm heterogeneity and product differentiation," Japan and the World Economy, Elsevier, vol. 55(C).
    2. Sapa, Agnieszka & Kryszak, Łukasz, 2021. "Processed Food Trade Of European Union Countries – The Gravity Approach," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2021(2).
    3. Johan Swinnen & Alessandro Olper & Senne Vandevelde, 2021. "From unfair prices to unfair trading practices: Political economy, value chains and 21st century agri‐food policy," Agricultural Economics, International Association of Agricultural Economists, vol. 52(5), pages 771-788, September.
    4. Beckman, Jayson & Dyck, John & Heerman, Kari, 2017. "The Global Landscape of Agricultural Trade, 1995-2014," Economic Information Bulletin 265270, United States Department of Agriculture, Economic Research Service.
    5. Agbekponou, Kossi Messanh & Cheptea, Angela & Latouche, Karine, 2022. "Retailer-driven value chains in the agri-food sector: An analysis of French firms," Working Papers 329781, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).
    6. Kossi Messanh Agbekponou & Angela Cheptea & Karine Latouche, 2023. "Quality upgrading and position in global value chains: Firm-level evidence from the French agri-food industry," Post-Print hal-04321554, HAL.
    7. 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.
    8. 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).
    9. Ilaria Fusacchia, 2020. "Evaluating the Impact of the US–China Trade War on Euro Area Economies: A Tale of Global Value Chains," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 6(3), pages 441-468, November.
    10. Asanka Wijesinghe & Chathurrdhika Yogarajah, 2022. "Trade Policy Impact on Global Value Chain Participation of the South Asian Countries," Journal of Asian Economic Integration, , vol. 4(1), pages 24-48, April.
    11. Alessandro Antimiani & Luca Salvatici & Ilaria Fusacchia, 2018. "GTAP-VA: An Integrated Tool for Global Value Chain Analysis," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 3(2), pages 69-105, December.
    12. Filippis, Fabrizio De & Giua, Mara & Salvatici, Luca & Vaquero-Pineiro, Cristina, 2021. "The International Competitiveness of Geographical Indications: Hype or Hope?," 2021 Conference, August 17-31, 2021, Virtual 315147, International Association of Agricultural Economists.
    13. Ilaria Fusacchia & Jean Balié & Luca Salvatici, 2022. "The AfCFTA impact on agricultural and food trade: a value added perspective," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 49(1), pages 237-284.
    14. Luca Salvatici & Silvia Nenci, 2017. "New features, forgotten costs and counterfactual gains of the international trading system," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 44(4), pages 592-633.
    15. Houcine Boughanmi & Fatma Al-Saadi & Lokman Zaibet & Ibtisam Al Abri & Abdallah Akintola, 2021. "Trade in Intermediates and Agro-Food Value Chain Integration: The Case of the Arab Region," SAGE Open, , vol. 11(1), pages 21582440211, March.
    16. Kossi Messanh Agbekponou & Angela Cheptea & Karine Latouche, 2023. "Quality upgrading and position in global value chains: Firm-level evidence from the French agri-food industry," Post-Print hal-04321480, HAL.
    17. Abrhám, Josef & Vošta, Milan & Čajka, Peter & Rubáček, Filip, 2021. "The specifics of selected agricultural commodities in international trade," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 7(2), June.

    More about this item

    Keywords

    agriculture; global value chain; 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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