Rural Transformation, GVCs and the Rise of the Services Economy

Christopher Findlay and Hein Roelfsema

Asia and the Pacific Policy Studies, 2025, vol. 12, issue 2

Abstract: The rise of global agricultural value chains presents both opportunities and challenges for rural transformation and economic development. In this regard, we propose that the expansion of the service sector in developing countries significantly influences the development of agricultural value chain, promoting wealth creation. We posit that when global value chains in agriculture are used to interpret rural transformation, the crucial function of services is often underemphasised. We construct an interaction term between the productivity dynamics in services and the evolution of global value chain (GVC) over time. The key finding suggests that the coevolution of service sector development and participation in GVC strongly correlates with increases in agricultural sector productivity. The analysis highlights the importance of considering the stage of development and the specific service subsectors when examining the relationship between services, GVC and rural transformation. We propose that enhancing the institutional environment, particularly with respect to contracts within such value chains, enables a larger role for domestic actors in capturing this value.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/app5.70018

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:asiaps:v:12:y:2025:i:2:n:e70018

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=2050-2680

Access Statistics for this article

More articles in Asia and the Pacific Policy Studies from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().