Agricultural global value chains of ASEAN: Participation, position, and perspectives from key partners
The Agricultural Global Value Chain (AGVC) is of a vital importance for the increase of export competitiveness, growth of rural income, and achievement of an overall inclusive growth. Its role is particularly significant for ASEAN member states (AMS), seeing that their agricultural sectors account for about 25% of GDP in general. While remarkable strides in agricultural cooperation, trade liberalization, and market integration of the AMS have been presented in previous reports of the ‘ASEAN-CGIAR Innovate for Food Program’, this report provides a comprehensive analysis of their performance in the AGVC. Enhancement of AGVC, typically through increased participation and higher positions in value-chain activities, is the main channel for market integration and trade expansions to deliver an inclusive growth. Thus, developing AGVC is paramount for AMS policymakers to unlock these benefits.
This report presents a comprehensive assessment of ASEAN’s engagement in the AGVC, particularly with regards to the participation rate, production length, as well as positions at the global, intra- and extra-regional levels. The report starts with an exhaustive literature review, which covers the definition, characterization, status, drivers and impacts of the AGVC. Key indicators of the AGVC for AMS are then calculated using the latest OECD-ICIO database, based on the production-side input-output approach for the period from 1995 to 2020. We then delineate distinctive features of ASEAN’s AGVC, in terms of the overall participation level, production length, and positions within the global context. A comparison of intra- and extra-regional AGVC dynamics is undertaken, with a particular focus to identify flows of intermediate goods which are pivotal to understanding the regional trade intricacies. Finally, we provide an in-depth investigation of ASEAN’s AGVC with each of its major trade partners, offering insights into the development of collaboration and division of labor in the international agricultural production that shape their trade relationships.
Authors
Mao, Rui; Wen, Shibin; Aung, Phyo Pa Pa; Chen, Kevin Z.
Citation
Mao, Rui; Wen, Shibin; Aung, Phyo Pa Pa; and Chen, Kevin Z. 2024. Agricultural global value chains of ASEAN: Participation, position, and perspectives from key partners. ASEAN-CGIAR Technical Report 4. Washington, DC: International Food Policy Research Institute. https://hdl.handle.net/10568/181839
Keywords
Asia; South-eastern Asia; Value Chains; Global Value Chains; Agricultural Value Chains; Stakeholders
Access/Licence
Open Access