Trends and evolution of global value chains in food and agriculture: Implications for food security and nutrition

Abstract

Value chains in the food and agricultural sectors are crucial for food systems transformation and economic development. As countries increasingly participate in global agrifood value chains (GAVC), their significance becomes even more pronounced. We highlight stylized facts, evolution, trends, and key players of GAVCs integration between 1990 and 2020 using data from the rich EORA multi-region input–output tables. Following this, we examine the relationship between GAVCs and dietary energy consumption, prevalence of undernourishment, overweight and stunting in low and middle income countries. Employing the Bartik shift share instrumental variable approach and several other identification strategies, we show a positive (negative) association between countries’ participation in GAVCs and dietary energy consumption (prevalence of undernourishment). We underscore substantial heterogeneity by income groups. Generally, results for countries in the upper-middle-income group are consistent with those of the global sample. However, GAVC participation of low-income countries is associated with reduced stunting only, and mixed results are found for lower-middle-income countries, including reduced stunting alongside increased undernourishment and overweight. These findings suggest that integration in global value chains could be conducive for food security and nutrition on the global level and the majority of country income groups, however contextual differences remain. Thus, policies targeting global value chain integration, food security and nutrition should be designed on a country-by-country basis and well-tailored to the specific challenges faced.