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Value Adding Pathways in Agriculture and Food Trade: The Role of GVCs and Services

Author

Listed:
  • Jared Greenville

    (OECD)

  • Kentaro Kawasaki

    (OECD)

  • Marie-Agnes Jouanjean

    (OECD)

Abstract

Global value chains (GVCs) in agriculture and food sectors have the potential to influence trading relationships and the gains from trade for different sectors along the value chain. This report explores the way in which value from trade and GVC participation is created for the agriculture sector. It examines differences in returns to the sector from participation in GVCs and trade either directly in contrast to participation that relies on downstream domestic processing. The study makes use of a database on trade in value added for 22 agro-food sectors derived from the Global Trade Analysis Project (GTAP) database. The evidence presented in this paper suggests that aggregate value to the agriculture and to the economy overall from direct participation in trade and GVCs generates at least as much value as participation that relies on domestic downstream processing. Similar overall gains from primary exports are associated with greater volumes and the value created from ‘value addition’ to these exports – the embodied service and other inputs. Indeed, countries that specialise in primary exports have higher shares of service value added in these exports, with this also being a determinant of value growth for middle-income countries.

Suggested Citation

  • Jared Greenville & Kentaro Kawasaki & Marie-Agnes Jouanjean, 2019. "Value Adding Pathways in Agriculture and Food Trade: The Role of GVCs and Services," OECD Food, Agriculture and Fisheries Papers 123, OECD Publishing.
    • Handle: RePEc:oec:agraaa:123-en
    DOI: 10.1787/bb8bb93d-en
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    Citations

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    Cited by:

    1. 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).
    2. 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.

    More about this item

    Keywords

    agricultural trade; GTAP; Multi-regional output;
    All these keywords.

    JEL classification:

    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • F60 - International Economics - - Economic Impacts of Globalization - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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