The Impact of Agricultural Global Value Chain Participation on Agricultural Total Factor Productivity

Under the condition of opening up, participation in international specialization and global value chains (GVCs) has become the main source for more and more countries to obtain foreign resources and advanced technologies, thereby promoting productivity improvement and technological progress. What ar...

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Main Authors: Defeng Zhang, Zhilu Sun
Format: Article
Language:English
Published: MDPI AG 2023-11-01
Series:Agriculture
Subjects:
Online Access:https://www.mdpi.com/2077-0472/13/11/2151
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author Defeng Zhang
Zhilu Sun
author_facet Defeng Zhang
Zhilu Sun
author_sort Defeng Zhang
collection DOAJ
description Under the condition of opening up, participation in international specialization and global value chains (GVCs) has become the main source for more and more countries to obtain foreign resources and advanced technologies, thereby promoting productivity improvement and technological progress. What are the pathways of agricultural GVC participation that affect agricultural total factor productivity (TFP)? Is the impact of agricultural GVC participation on agricultural TFP consistent across different statuses and modes of agricultural GVC participation? This paper elaborates on the theoretical mechanism of agricultural GVC participation affecting agricultural TFP, and then empirically estimates the impact of different statuses and modes of agricultural GVC participation on agricultural TFP by taking 58 countries as examples. The results show that agricultural GVCs affect agricultural TFP by several direct and indirect pathways. There was a U-shaped relationship between agricultural GVC participation and agricultural TFP, which means that after crossing a certain threshold, the former has a positive impact on the latter. By participating in agricultural GVCs, agricultural TFP in high-income and upper-middle-income countries was significantly improved, while in lower-middle-income countries it was not. Both forward and backward agricultural GVC participation were conducive to improving agricultural TFP in high-income and upper-middle-income countries, but only backward agricultural GVC participation was conducive to improving agricultural TFP in lower-middle-income countries. Therefore, every country needs to actively explore its optimal pathway to participate in agricultural GVCs in order to maximize the participation benefits and promote the improvement in agricultural TFP, simultaneously.
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spelling doaj.art-67d4a4cf92e446d7a47223e5e91a5a282023-11-24T14:23:25ZengMDPI AGAgriculture2077-04722023-11-011311215110.3390/agriculture13112151The Impact of Agricultural Global Value Chain Participation on Agricultural Total Factor ProductivityDefeng Zhang0Zhilu Sun1Institute of Agricultural Economics and Development, Chinese Academy of Agricultural Sciences, Beijing 100081, ChinaInstitute of Agricultural Economics and Development, Chinese Academy of Agricultural Sciences, Beijing 100081, ChinaUnder the condition of opening up, participation in international specialization and global value chains (GVCs) has become the main source for more and more countries to obtain foreign resources and advanced technologies, thereby promoting productivity improvement and technological progress. What are the pathways of agricultural GVC participation that affect agricultural total factor productivity (TFP)? Is the impact of agricultural GVC participation on agricultural TFP consistent across different statuses and modes of agricultural GVC participation? This paper elaborates on the theoretical mechanism of agricultural GVC participation affecting agricultural TFP, and then empirically estimates the impact of different statuses and modes of agricultural GVC participation on agricultural TFP by taking 58 countries as examples. The results show that agricultural GVCs affect agricultural TFP by several direct and indirect pathways. There was a U-shaped relationship between agricultural GVC participation and agricultural TFP, which means that after crossing a certain threshold, the former has a positive impact on the latter. By participating in agricultural GVCs, agricultural TFP in high-income and upper-middle-income countries was significantly improved, while in lower-middle-income countries it was not. Both forward and backward agricultural GVC participation were conducive to improving agricultural TFP in high-income and upper-middle-income countries, but only backward agricultural GVC participation was conducive to improving agricultural TFP in lower-middle-income countries. Therefore, every country needs to actively explore its optimal pathway to participate in agricultural GVCs in order to maximize the participation benefits and promote the improvement in agricultural TFP, simultaneously.https://www.mdpi.com/2077-0472/13/11/2151agricultural global value chainsagricultural total factor productivityvalue-added tradeinternational specializationsustainable agricultureagri-food systems
spellingShingle Defeng Zhang
Zhilu Sun
The Impact of Agricultural Global Value Chain Participation on Agricultural Total Factor Productivity
Agriculture
agricultural global value chains
agricultural total factor productivity
value-added trade
international specialization
sustainable agriculture
agri-food systems
title The Impact of Agricultural Global Value Chain Participation on Agricultural Total Factor Productivity
title_full The Impact of Agricultural Global Value Chain Participation on Agricultural Total Factor Productivity
title_fullStr The Impact of Agricultural Global Value Chain Participation on Agricultural Total Factor Productivity
title_full_unstemmed The Impact of Agricultural Global Value Chain Participation on Agricultural Total Factor Productivity
title_short The Impact of Agricultural Global Value Chain Participation on Agricultural Total Factor Productivity
title_sort impact of agricultural global value chain participation on agricultural total factor productivity
topic agricultural global value chains
agricultural total factor productivity
value-added trade
international specialization
sustainable agriculture
agri-food systems
url https://www.mdpi.com/2077-0472/13/11/2151
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