IDEAS home Printed from https://ideas.repec.org/a/plo/pone00/0260043.html
   My bibliography  Save this article

The impacts of economic globalization on agricultural value added in developing countries

Author

Listed:
  • Agus Dwi Nugroho
  • Priya Rani Bhagat
  • Robert Magda
  • Zoltan Lakner

Abstract

Countries in the world have various indices for the implementation of economic globalization (EG). This refers to positive and negative impacts arising from its implementation, especially in agriculture. This sector is still a basic source of existence in developing countries. At the same time, these countries have been unable to optimize their agricultural value-added (AVA) and only earn a low level of income. That way, developing countries need to take advantage of EG to increase income from agricultural exports and farmers’ welfare. Other than that, there has been no study examining the impacts of EG on AVA in developing countries. So, this study intends to evaluate the impacts of the exchange rates, foreign direct investment (FDI) inflows, total agricultural export values, agricultural import duties, and fertilizer imports on AVA in developing countries. The panel data technique is used to assess its impact in 17 developing countries during 2006–2018. The study showed that FDI inflows and agricultural export values increase AVA in developing countries. In this study, EG positively impacts developing countries, but its implementation must pay attention to achieve sustainable development goals. We recommend developing countries focus on investments in human capital and technologies (or R&D), ensure foreign investors collaborate with local agricultural firms, increase agricultural exports, and create a conducive economic system

Suggested Citation

  • Agus Dwi Nugroho & Priya Rani Bhagat & Robert Magda & Zoltan Lakner, 2021. "The impacts of economic globalization on agricultural value added in developing countries," PLOS ONE, Public Library of Science, vol. 16(11), pages 1-23, November.
    • Handle: RePEc:plo:pone00:0260043
    DOI: 10.1371/journal.pone.0260043
    as

    Download full text from publisher

    File URL: https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0260043
    Download Restriction: no
    File URL: https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0260043&type=printable
    Download Restriction: no
    File URL: https://libkey.io/10.1371/journal.pone.0260043?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Simplice Asongu & Uduak S. Akpan & Salisu R. Isihak, 2018. "Determinants of foreign direct investment in fast-growing economies: evidence from the BRICS and MINT countries," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 4(1), pages 1-17, December.
    2. Anupam Das & Biru Paksha Paul, 2011. "Openness and growth in emerging Asian economies: Evidence from GMM estimations of a dynamic panel," Economics Bulletin, AccessEcon, vol. 31(3), pages 2219-2228.
    3. Osborne Sanida & John Asafu-Adjaye & Renuka Mahadevan, 2016. "Challenges for agricultural development in a resource-rich developing country: a case study of Papua New Guinea," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 21(2), pages 235-256, April.
    4. Omar Appolloni, 2009. "Central America and its Perception of 2020 “Regional Integration” Aim," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 16(3), pages 768-778, October.
    5. Sin-Yu Ho & Bernard Njindan Iyke, 2020. "The Determinants of Economic Growth in Ghana: New Empirical Evidence," Global Business Review, International Management Institute, vol. 21(3), pages 626-644, June.
    6. Mary O. Agboola & Festus V. Bekun, 2019. "Does Agricultural Value Added Induce Environmental Degradation? Empirical Evidence from an Agrarian Country," Research Africa Network Working Papers 19/040, Research Africa Network (RAN).
    7. Karadimitropoulou, Aikaterini, 2018. "Advanced economies and emerging markets: Dissecting the drivers of business cycle synchronization," Journal of Economic Dynamics and Control, Elsevier, vol. 93(C), pages 115-130.
    8. Xiaodong Xu & Hafiz Syed Mohsin Abbas & Chunxia Sun & Samreen Gillani & Atta Ullah & Muhammad Ahsan Ali Raza, 2021. "Impact of globalization and governance determinants on economic growth: An empirical analysis of Asian economies," Growth and Change, Wiley Blackwell, vol. 52(2), pages 1137-1154, June.
    9. Sajid Anwar & Lan Phi Nguyen, 2010. "Foreign direct investment and economic growth in Vietnam," Asia Pacific Business Review, Taylor & Francis Journals, vol. 16(1-2), pages 183-202, April.
    10. Josef VOLOŠIN & Luboš SMUTKA & Richard SELBY, 2011. "Analysis of external and internal influences on CR agrarian foreign trade," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 57(9), pages 422-435.
    11. C. F. Scheepers, 1982. "The International Trade Strategy of South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 50(1), pages 8-15, March.
    12. Muhammad Haseeb & Tulus Suryanto & Nira Hariyatie Hartani & Kittisak Jermsittiparsert, 2020. "Nexus Between Globalization, Income Inequality and Human Development in Indonesian Economy: Evidence from Application of Partial and Multiple Wavelet Coherence," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 147(3), pages 723-745, February.
    13. Giudici, Paolo & Huang, Bihong & Spelta, Alessandro, 2019. "Trade networks and economic fluctuations in Asian countries," Economic Systems, Elsevier, vol. 43(2), pages 1-1.
    14. Jennifer West & Ruth Haug, 2017. "Polarised narratives and complex realities in Tanzania’s Southern Agricultural Growth Corridor," Development in Practice, Taylor & Francis Journals, vol. 27(4), pages 418-431, May.
    15. Sherrow O. Pinder, 2009. "The Dominican Republic and Central America Free Trade Agreement with the USA: some concerns," Development in Practice, Taylor & Francis Journals, vol. 19(2), pages 227-232, April.
    16. Giray Gozgor, 2019. "Effects of the agricultural commodity and the food price volatility on economic integration: an empirical assessment," Empirical Economics, Springer, vol. 56(1), pages 173-202, January.
    17. John Thoburn, 2004. "Globalization and poverty in Vietnam: Introduction and overview," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 9(2), pages 127-144.
    18. Karabo Molefe & Natanya Meyer & Jacques de Jongh, 2018. "A Comparative Analysis of the Socio-Economic Challenges Faced by SMMEs: The Case of the Emfuleni and Midvaal Local Municipal Areas," Journal of Economics and Behavioral Studies, AMH International, vol. 10(4), pages 7-21.
    19. Parisa Samimi & Hashem Salarzadeh Jenatabadi, 2014. "Globalization and Economic Growth: Empirical Evidence on the Role of Complementarities," PLOS ONE, Public Library of Science, vol. 9(4), pages 1-7, April.
    20. Paolo Agnolucci & Vincenzo De Lipsis, 2020. "Long-run trend in agricultural yield and climatic factors in Europe," Climatic Change, Springer, vol. 159(3), pages 385-405, April.
    21. Muhammad Qasim & Zahid Pervaiz & Amatul Razzaq Chaudhary, 2020. "Do Poverty and Income Inequality Mediate the Association Between Agricultural Land Inequality and Human Development?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 151(1), pages 115-134, August.
    22. Benjamin Leon Bodirsky & Susanne Rolinski & Anne Biewald & Isabelle Weindl & Alexander Popp & Hermann Lotze-Campen, 2015. "Global Food Demand Scenarios for the 21st Century," PLOS ONE, Public Library of Science, vol. 10(11), pages 1-27, November.
    23. John H Dunning, 1988. "The Eclectic Paradigm of International Production: A Restatement and Some Possible Extensions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(1), pages 1-31, March.
    24. Barbier, Edward B., 2000. "Links between economic liberalization and rural resource degradation in the developing regions," Agricultural Economics, Blackwell, vol. 23(3), pages 299-310, September.
    25. Samargandi, Nahla & Kutan, Ali M. & Sohag, Kazi & Alqahtani, Faisal, 2020. "Equity market and money supply spillovers and economic growth in BRICS economies: A global vector autoregressive approach," The North American Journal of Economics and Finance, Elsevier, vol. 51(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mohd Shahidan Shaari & Muhamad Huzaifah Asbullah & Noorazeela Zainol Abidin & Zulkefly Abdul Karim & Benjamin Nangle, 2023. "Determinants of Foreign Direct Investment in ASEAN+3 Countries: The Role of Environmental Degradation," IJERPH, MDPI, vol. 20(3), pages 1-14, January.
    2. Justin Paul & Gurmeet Singh, 2017. "The 45 years of foreign direct investment research: Approaches, advances and analytical areas," The World Economy, Wiley Blackwell, vol. 40(11), pages 2512-2527, November.
    3. Kechagia, Polyxeni & Metaxas, Theodore, 2020. "Institutional quality and FDI inflows: an empirical investigation for Turkey," MPRA Paper 104309, University Library of Munich, Germany.
    4. Qurrota Ayu NINDIEN & Arivina Ratih Yulihar TAHER & Asih MURWIATI & I Wayan SUPARTA & Neli AIDA, 2024. "Direct And Indirect Effect Of Globalization On Economic Growth In Indonesia," Scientific Bulletin - Economic Sciences, University of Pitesti, vol. 23(1), pages 33-44.
    5. Nabila Khurshid & Natasha Arfa Butt & Asma Fiaz & Suzan Sameer Issa & Mosab I. Tabash & Mujeeb Saif Mohsen Al-Absy, 2024. "Do Climate Change Matter for Agricultural Production in an era of Globalization? Empirical Insights from Pakistan," International Journal of Energy Economics and Policy, Econjournals, vol. 14(5), pages 534-545, September.
    6. Yeboah, Samuel, 2023. "Navigating Global Markets: The Impact of FDI on Startups' Access to Insights, Networks, and Brand Visibility," MPRA Paper 118437, University Library of Munich, Germany, revised 30 Aug 2023.
    7. Yeboah, Samuel, 2023. "Navigating Global Markets: The Impact of FDI on Startups' Access to Insights, Networks, and Brand Visibility," MPRA Paper 118434, University Library of Munich, Germany, revised 30 Aug 2023.
    8. Makun, Keshmeer Kanewar, 2016. "Direct Foreign Investment and its Determinants: A Case Study - Gli investimenti diretti esteri e loro determinanti : studio di un caso," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 69(2), pages 151-174.
    9. E. Tsanana & X. Chapsa & C. Katrakilidis, 2016. "Is growth corrupted or bureaucratic? Panel evidence from the enlarged EU," Applied Economics, Taylor & Francis Journals, vol. 48(33), pages 3131-3147, July.
    10. Nguyen, Dao Thi Hong & Sun, Sizhong & Anwar, Sajid, 2017. "A long-run and short-run analysis of the macroeconomic interrelationships in Vietnam," Economic Analysis and Policy, Elsevier, vol. 54(C), pages 15-25.
    11. Rosalie L Tung & Günter K Stahl, 2018. "The tortuous evolution of the role of culture in IB research: What we know, what we don’t know, and where we are headed," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(9), pages 1167-1189, December.
    12. Collinson S. & Narula, R., 2014. "Asset recombination in international partnerships as a source of improved innovation capabilities in China," MERIT Working Papers 2014-061, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    13. Adugna Lemi & Sisay Asefa, 2009. "Differential Impacts of Economic Volatility and Governance on Manufacturing and Non-Manufacturing Foreign Direct Investments: The Case of US Multinationals in Africa," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 35(3), pages 367-395.
    14. Fumihiko Isada, 2021. "Changes in the International Network of Japanese Electronics Manufacturers," International Journal of Business and Management, International Institute of Social and Economic Sciences, vol. 9(1), pages 47-62, May.
    15. Rana, Mohammad B. & Elo, Maria, 2017. "Transnational Diaspora and Civil Society Actors Driving MNE Internationalisation: The Case of Grameenphone in Bangladesh," Journal of International Management, Elsevier, vol. 23(1), pages 87-106.
    16. Vu Hoang Duong & Tuong Phi Vinh, 2024. "Spillover effects of Japanese firms and the role of absorptive capacity in Vietnam," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 38(2), pages 22-41, November.
    17. Frey, Rainer & Hussinger, Katrin, 2006. "The role of technology in M&As: a firm-level comparison of cross-border and domestic deals," Discussion Paper Series 1: Economic Studies 2006,45, Deutsche Bundesbank.
    18. Lucian Belascu & Alexandra Horobet & Georgiana Vrinceanu & Consuela Popescu, 2021. "Performance Dissimilarities in European Union Manufacturing: The Effect of Ownership and Technological Intensity," Sustainability, MDPI, vol. 13(18), pages 1-19, September.
    19. Li, Linjie & Liu, Xiaming & Yuan, Dong & Yu, Miaojie, 2017. "Does outward FDI generate higher productivity for emerging economy MNEs? – Micro-level evidence from Chinese manufacturing firms," International Business Review, Elsevier, vol. 26(5), pages 839-854.
    20. Oladunjoye, Opeyemi Nathaniel & Areyemi, Victor Olaife, 2021. "Tourism, Globalization and Economic Growth in Nigeria," African Journal of Economic Review, African Journal of Economic Review, vol. 9(2), April.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:plo:pone00:0260043. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: plosone (email available below). General contact details of provider: https://journals.plos.org/plosone/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.