Foreign direct investment, globalized agri-food value chains and transformation

We examine the determinants of participation and positioning in the Agriculture Globalized Value Chains (AGVC) with focus on role of foreign Direct Investment (FDI) in agriculture. Among the determinants, trade policies that are reflected in cost to trade play a significant role in AGVC engagement....

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Autores principales: Saroj, Sunil, Veeramani, Choorikkad, Roy, Devesh, Kamar, Abul, Pradhan, Mamata
Formato: Conference Paper
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2024
Materias:
Acceso en línea:https://hdl.handle.net/10568/155074
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author Saroj, Sunil
Veeramani, Choorikkad
Roy, Devesh
Kamar, Abul
Pradhan, Mamata
author_browse Kamar, Abul
Pradhan, Mamata
Roy, Devesh
Saroj, Sunil
Veeramani, Choorikkad
author_facet Saroj, Sunil
Veeramani, Choorikkad
Roy, Devesh
Kamar, Abul
Pradhan, Mamata
author_sort Saroj, Sunil
collection Repository of Agricultural Research Outputs (CGSpace)
description We examine the determinants of participation and positioning in the Agriculture Globalized Value Chains (AGVC) with focus on role of foreign Direct Investment (FDI) in agriculture. Among the determinants, trade policies that are reflected in cost to trade play a significant role in AGVC engagement. FDI in agriculture affects AGVC structure correlating significantly with forward participation. FDI holds potential for enhancing value addition, technology diffusion, and market access. We then assess the effect of AGVC on production diversification in agriculture i.e., manifested in crop choices. A priori is unclear whether AGVC participation and positioning leads to greater specialization or diversification as there are forces in either direction. Our findings show that AGVC participation is associated with diversified agriculture. Moreover, the effect varies by positioning (backward and forward). The estimates using panel regression, Lewbel instrumental variable method and continuous treatment matching yielding dose response functions show these results to be robust. Results also vary regionally. East and Southeast Asia show the strongest association between AGVC and product diversification.
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institution CGIAR Consortium
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publishDate 2024
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spelling CGSpace1550742025-11-06T07:16:07Z Foreign direct investment, globalized agri-food value chains and transformation Saroj, Sunil Veeramani, Choorikkad Roy, Devesh Kamar, Abul Pradhan, Mamata foreign investment value chains agrifood systems diversification uncertainty We examine the determinants of participation and positioning in the Agriculture Globalized Value Chains (AGVC) with focus on role of foreign Direct Investment (FDI) in agriculture. Among the determinants, trade policies that are reflected in cost to trade play a significant role in AGVC engagement. FDI in agriculture affects AGVC structure correlating significantly with forward participation. FDI holds potential for enhancing value addition, technology diffusion, and market access. We then assess the effect of AGVC on production diversification in agriculture i.e., manifested in crop choices. A priori is unclear whether AGVC participation and positioning leads to greater specialization or diversification as there are forces in either direction. Our findings show that AGVC participation is associated with diversified agriculture. Moreover, the effect varies by positioning (backward and forward). The estimates using panel regression, Lewbel instrumental variable method and continuous treatment matching yielding dose response functions show these results to be robust. Results also vary regionally. East and Southeast Asia show the strongest association between AGVC and product diversification. 2024-08-06 2024-10-02T14:33:04Z 2024-10-02T14:33:04Z Conference Paper https://hdl.handle.net/10568/155074 en Open Access application/pdf International Food Policy Research Institute Saroj, Sunil; Veeramani, Choorikkad; Roy, Devesh; Kamar, Abul; and Pradhan, Mamata. 2024. Foreign direct investment, globalized agri-food value chains and transformation. Presented at the International Conference of Agricultural Economists in New Delhi, India on August 6, 2024. https://iaae.confex.com/iaae/icae32/meetingapp.cgi/Paper/20855
spellingShingle foreign investment
value chains
agrifood systems
diversification
uncertainty
Saroj, Sunil
Veeramani, Choorikkad
Roy, Devesh
Kamar, Abul
Pradhan, Mamata
Foreign direct investment, globalized agri-food value chains and transformation
title Foreign direct investment, globalized agri-food value chains and transformation
title_full Foreign direct investment, globalized agri-food value chains and transformation
title_fullStr Foreign direct investment, globalized agri-food value chains and transformation
title_full_unstemmed Foreign direct investment, globalized agri-food value chains and transformation
title_short Foreign direct investment, globalized agri-food value chains and transformation
title_sort foreign direct investment globalized agri food value chains and transformation
topic foreign investment
value chains
agrifood systems
diversification
uncertainty
url https://hdl.handle.net/10568/155074
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