Deep trade agreements and agri-food global value chain integration

Dongin Kim, Sandro Steinbach and Carlos Zurita

Food Policy, 2024, vol. 127, issue C

Abstract: This paper assesses the effects of deep trade agreements on agri-food global value chain (GVC) integration. We employ a theory-consistent gravity model and utilize a detailed bilateral GVC flow dataset covering 1991 to 2020. Our findings indicate that such trade agreements favor forward integration into agri-food GVCs more than backward integration. The analysis of how these effects unfold over time suggests a delay of up to four years before significant changes in GVC integration are observable. Moreover, deeper trade agreements exert a stronger influence on GVC integration, with specific provisions related to the regulation of standards and foreign investment acting as catalysts for agri-food GVC integration. Conversely, clauses regarding intellectual property rights and geographical indicators obstruct GVC integration, while developed countries benefit most from GVC integration. These insights are vital for policymakers seeking to mitigate the unequal benefits of deep trade agreements in agri-food GVC integration.

Keywords: Deep trade agreements; Agri-food global value chains; Three-way gravity model; Event studies; Treatment heterogeneity (search for similar items in EconPapers)
JEL-codes: F14 Q17 Q18 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jfpoli:v:127:y:2024:i:c:s0306919224000976

DOI: 10.1016/j.foodpol.2024.102686

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