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Understanding Firm Networks in Global Agricultural Value Chains

Author

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  • Beck,Anne Helene
  • Lim, Sunghun
  • Taglioni,Daria

Abstract

This paper explores the evolution and resilience of global value chains (GVCs) in the agrifood sector, which intensified since the 1994 Uruguay Round Agreement. Using unique data from the FactSet database, along with Fortune 500 lists, the comprehensive analysis of approximately 17,500 agribusiness companies worldwide examines more than 150,000 supplier and customer connections from 2014 to 2022. The findings reveal that large corporations, acting as central nodes, have increased their network centrality in global value chains, particularly through geographic diversification and a concentrated supply strategy. The study also indicates that there is a correlation between the complexity and depth of firm-to-firm linkages and increased resilience, suggesting that firms with greater connectivity are less likely to exit the industry. The analysis not only contributes new insights into the structure and dynamics of agribusiness networks, but also highlights the role of firm linkages in navigating recent disruptive global events, such as the United States-China Trade War, the COVID-19 pandemic, extreme weather episodes, and geopolitical tensions.

Suggested Citation

  • Beck,Anne Helene & Lim, Sunghun & Taglioni,Daria, 2024. "Understanding Firm Networks in Global Agricultural Value Chains," Policy Research Working Paper Series 10774, The World Bank.
  • Handle: RePEc:wbk:wbrwps:10774
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    References listed on IDEAS

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