Impact of economic globalisation on agriculture in developing countries: A review

https://doi.org/10.17221/401/2021-AGRICECONCitation:

Nugroho A.D., Lakner Z. (2022): Impact of economic globalisation on agriculture in developing countries: A review. Agric. Econ. – Czech, 68: 180–188.

download PDF

Economic globalisation (EG) in developing countries has continued to increase over the last 40 years. EG has both beneficial and harmful impacts on all sectors, including agriculture. This paper aims to determine the impact of EG on agriculture in developing countries. This aim was met by conducting a systematic review (SR) of 64 papers from Scopus and Web of Science (WoS). EG has influenced various elements of agriculture in developing countries, including i) product, supply chain, food security, ii) trade, iii) economic, social, political element and environment and iv) technology and research and development (R&D). We propose several policies in this paper to maximise EG's positive impact while minimising its negative impact.

References:
Abbas S., Waheed A. (2017): Trade competitiveness of Pakistan: The revealed comparative advantage approach. Competitiveness Review: An International Business Journal, 27: 462–475. https://doi.org/10.1108/CR-12-2015-0092
 
Anderson T. (2006): Globalization and agricultural trade: The market access and food security dilemmas of developing countries. In: Ghosh B.N. (ed.): Globalization and the Third World: A Study of Negative Consequences. London, United Kingdom, Palgrave Macmillan: 251–264.
 
Arencibia M.G. (2011): Socialism between globalization and the market: The experience of Europe, China and Vietnam. Review, 2: 105–116.
 
Atici C. (2005): Liberalization-goals trade-offs. Implications of agricultural trade liberalization for developing countries. Outlook on Agriculture, 34: 83–89. https://doi.org/10.5367/0000000054224364
 
Awad A., Youssof I. (2016): The impact of economic globalisation on unemployment: The Malaysian experience. Journal of International Trade and Economic Development, 25: 938–958. https://doi.org/10.1080/09638199.2016.1151069
 
Barrett H.R., Browne A.W., Harris P.J.C., Cadoret K. (2002): Organic certification and the UK market: Organic imports from developing countries. Food Policy, 27: 301–318. https://doi.org/10.1016/S0306-9192(02)00036-2
 
Biles J.J., Brehm K., Enrico A., Kiendl C., Morgan E., Teachout A., Vasquez K. (2007): Globalization of food retailing and transformation of supply networks: Consequences for small-scale agricultural producers in Southeastern Mexico. Journal of Latin American Geography, 6: 55–75. https://doi.org/10.1353/lag.2007.0032
 
Bullion A. (2003): Globalization, South Asian agriculture and the WTO. South Asia Economic Journal, 4: 1–17. https://doi.org/10.1177/139156140300400102
 
Camargo E., Wang M.Y. (2015): A pilot study on the internationalization of Taiwanese agri-biotech SMEs: A technology-organization-environment (TOE) perspective. In: Portland International Conference on Management of Engineering and Technology, Portland, US, Sept 2–6, 2015: 1207–1217.
 
Cheshire L., Woods M. (2013): Globally engaged farmers as transnational actors: Navigating the landscape of agri-food globalization. Geoforum, 44: 232–242. https://doi.org/10.1016/j.geoforum.2012.09.003
 
Ching H.S., Hsiao C., Wan S.K., Wang T. (2011): Economic benefits of globalization: The impact of entry to the WTO on China's growth. Pacific Economic Review, 16: 285–301. https://doi.org/10.1111/j.1468-0106.2011.00548.x
 
Diao X., Roe T., Somwaru A., American S., Economics A., Aug N., Diao X., Roe T., Somwaru A. (2002): Developing country interests in agricultural reforms under the world trade organization. American Journal of Agricultural Economics, 84: 782–790. https://doi.org/10.1111/1467-8276.00337
 
Díaz-Bonilla E. (2010): Globalisation of agriculture and food crises: Then and now. In: Karapinar B., Haberli C. (eds.): Food Crises and the WTO: World Trade Forum. Geneva, Switzerland, World Trade Organization (WTO): 1–6.
 
Ding X., Qian Y., Tong T. (2016): Globalization, employment and agriculture: A review of the eleventh forum of the world association for political economy. World Review of Political Economy, 7: 541–555.
 
Dollar D., Hallward-Driemeier M., Mengistae T. (2006): Investment climate and international integration. World Development, 34: 1498–1516. https://doi.org/10.1016/j.worlddev.2006.05.001
 
Dreher A. (2006): Does globalization affect growth? Evidence from a new index of globalization. Applied Economics, 38: 1091–1110. https://doi.org/10.1080/00036840500392078
 
Dube O., Vargas J.F. (2013): Commodity price shocks and civil conflict: Evidence from Colombia. Review of Economic Studies, 80: 1384–1421. https://doi.org/10.1093/restud/rdt009
 
Erokhin V. (2016): Structural changes in international trade in food: Competitive growth models for economies in transition. In: Proceedings of the 3rd International Conference: Economic Scientific Research – Theoretical, Empirical, and Practical Approaches, Bucharest, Romania, December 3–4, 2015: 531–546.
 
Fan P., Ouyang Z., Nguyen D.D., Nguyen T.T.H., Park H., Chen J. (2019): Urbanization, economic development, environmental and social changes in transitional economies: Vietnam after Doimoi. Landscape and Urban Planning, 187: 145–155. https://doi.org/10.1016/j.landurbplan.2018.10.014
 
Fatihudin D. (2019): Globalization, strengthening of Indonesian local market character as consequences and reality of open economic system. Humanities and Social Sciences Reviews, 7: 11–16. https://doi.org/10.18510/hssr.2019.732
 
Fold N. (2000): Globalisation, state regulation and industrial upgrading of the oil seed industries in Malaysia and Brazil. Singapore Journal of Tropical Geography, 21: 263–278. https://doi.org/10.1111/1467-9493.00081
 
Ghazal K.N., Qasim R.S., Sabah O.H. (2021): Impact of globalization on agricultural foreign trade of selected developing countries (1995–2017). Iraqi Journal of Agricultural Sciences, 52: 1254–1266. https://doi.org/10.36103/ijas.v52i5.1463
 
Ghosh B.N. (2009): Globalization and food policy dilemmas in developing countries: Contextualizing the Indian scenario. Journal of Third World Studies, 26: 107–120.
 
Goss J., Burch D. (2001): From agricultural modernisation to agri-food globalisation: The waning of national development in Thailand. Third World Quarterly, 22: 969–986. https://doi.org/10.1080/01436590120099740
 
Gulati A. (2000): Globalization, WTO and food security: Emerging issues and options. Quarterly Journal of International Agriculture, 39: 343–357.
 
Guo R., Qiu X., He Y. (2021): Research on agricultural cooperation potential between China and CEE countries based on resource complementarity. Mathematics, 9: 1–23. https://doi.org/10.3390/math9050503
 
Hoang H. (2020): The underground economy in transition countries from the perspective of globalization: The case of Vietnam. Revista Amazonia Investiga, 9: 234–242. https://doi.org/10.34069/AI/2020.29.05.26
 
Hopewell K. (2013): New protagonists in global economic governance: Brazilian agribusiness at the WTO. New Political Economy, 18: 603–623. https://doi.org/10.1080/13563467.2013.736957
 
Johnston B.F., Mellor J.W. (1961): The role of agriculture in economic development. American Economic Review, 51: 566–593.
 
Jorgenson A.K. (2007): Foreign direct investment and pesticide use intensity in less-developed countries: A quantitative investigation. Society and Natural Resources, 20: 73–83. https://doi.org/10.1080/08941920600982866
 
Jorgenson A.K., Carolina N. (2008): Foreign investment dependence and agriculture production: Pesticide and fertilizer use in less-developed countries, 1990–2000. Social Forces, 87: 529–560. https://doi.org/10.1353/sof.0.0064
 
Josling T. (2012): New Trade Issues in Food, Agriculture, and Natural Resources. Oxford, United Kingdom, Oxford University Press. Avalaible at https://www.oxfordhandbooks.com/view/10.1093/oxfordhb/9780199586103.001.0001/oxfordhb-9780199586103-e-30 (accessed Nov 17, 2021).
 
Kamran A., Syed N.A., Rizvi S.M.A., Ameen B., Ali S.N. (2021): Impact of China-Pakistan economic corridor (CPEC) on agricultural sector of Pakistan. In: Xu J., Duca G., Ahmed S., García Márquez F., Hajiyev A. (eds.): Proceedings of the 14th International Conference on Management Science and Engineering Management (ICMSEM 2020). Advances in Intelligent Systems and Computing. Cham, Switzerland, Springer: 538–549.
 
KOF Swiss Economic Institute (2021): KOF Globalisation Index. KOF Swiss Economic Institute. Available at https://kof.ethz.ch/en/forecasts-and-indicators/indicators/kof-globalisation-index.html (accesed Nov 17, 2021).
 
Lambin E.F., Meyfroidt P. (2011): Global land use change, economic globalization, and the looming land scarcity. Proceedings of the National Academy of Sciences of the United States of America, 108: 3465–3472. https://doi.org/10.1073/pnas.1100480108
 
Li L., Liu J., Cheng B., Chhatre A., Dong J., Liang W. (2017): Effects of economic globalization and trade on forest transitions: Evidence from 76 developing countries. Forestry Chronicle, 93: 171–179. https://doi.org/10.5558/tfc2017-023
 
Lin F. (2021): Agriculture exports, child labor and youth education: Evidence from 68 developing countries. Review of International Economics, 30: 490–513. https://doi.org/10.1111/roie.12572
 
Losch B. (2004): Debating the multifunctionality of agriculture: From trade negotiations to development policies by the South. Journal of Agrarian Change, 4: 336–360. https://doi.org/10.1111/j.1471-0366.2004.00082.x
 
Malezieux E. (2000): Global network for pineapple research. Acta Horticulturae, 529: 35–47. https://doi.org/10.17660/ActaHortic.2000.529.2
 
Meher R. (2009): Globalization, displacement and the livelihood issues of tribal and agriculture dependent poor people: The case of mineral-based industries in India. Journal of Developing Societies, 25: 457–480. https://doi.org/10.1177/0169796X0902500403
 
Méndez V.E., Bacon C.M., Olson M., Petchers S., Herrador D., Carranza C., Trujillo L., Guadarrama-Zugasti C., Cordón A., Mendoza A. (2010): Effects of fair trade and organic certifications on small-scale coffee farmer households in Central America and Mexico. Renewable Agriculture and Food Systems, 25: 236–251. https://doi.org/10.1017/S1742170510000268
 
Mihalache-O'keef A., Li Q. (2011): Modernization vs. dependency revisited: Effects of foreign direct investment on food security in less developed countries. International Studies Quarterly, 55: 71–93. https://doi.org/10.1111/j.1468-2478.2010.00636.x
 
Minten B., Randrianarison L., Swinnen J. (2007): Spillovers from high-value agriculture for exports on land use in developing countries: Evidence from Madagascar. Agricultural Economics, 37: 265–275. https://doi.org/10.1111/j.1574-0862.2007.00273.x
 
Munir K., Bukhari M. (2020): Impact of globalization on income inequality in Asian emerging economies. International Journal of Sociology and Social Policy, 40: 44–57. https://doi.org/10.1108/IJSSP-08-2019-0167
 
Murray W.E. (2000): Neoliberal globalisation, 'exotic' agro-exports, and local change in the Pacific Islands: A study of the Fijian kava sector. Singapore Journal of Tropical Geography, 21: 355–373. https://doi.org/10.1111/1467-9493.00086
 
Mykhailov A.M., Mykhailova L., Kharchenko T., Mohylna L., Shestakova A. (2021): Investment instruments for managing innovative transformations of the agricultural sector to ensure sustainable development in the context of globalization. Estudios de Economia Aplicada, 39: 1–14. https://doi.org/10.25115/eea.v39i7.5068
 
Neilson J., Dwiartama A., Fold N., Permadi D. (2020): Resource-based industrial policy in an era of global production networks: Strategic coupling in the Indonesian cocoa sector. World Development, 135: 105045. https://doi.org/10.1016/j.worlddev.2020.105045
 
Nelson E.J., Helmus M.R., Cavender-Bares J., Polasky S., Las-ky J.R., Zanne A.E., Pearse W.D., Kraft N.J.B., Miteva D.A., Fagan W.F. (2016): Commercial plant production and consumption still follow the latitudinal gradient in species diversity despite economic globalization. PLoS ONE, 11: 1–23. https://doi.org/10.1371/journal.pone.0163002
 
Nguyen D.P., Ho V.T., Vo X.V. (2018): Challenges for Vietnam in the globalization era. Asian Journal of Law and Economics, 9: 1–3. https://doi.org/10.1515/ajle-2018-0002
 
Nigh R. (1997): Organic agriculture and globalization: A Maya associative corporation in Chiapas, Mexico. Human Organization, 56: 427–436. https://doi.org/10.17730/humo.56.4.w761q3q1h4h8m247
 
Nugroho A.D. (2021): Agricultural market information in developing countries: A literature review. Agricultural Economics – Czech, 67: 468–477. https://doi.org/10.17221/129/2021-AGRICECON
 
Opara L.U., Mazaud F. (2001): Food traceability from field to plate. Outlook on Agriculture, 30: 239–247. https://doi.org/10.5367/000000001101293724
 
Ozogul G. (2012): Effects of changing concepts and conditions of agricultural production to agricultural machinery manufacturing sector in globalizing world. Journal of Food, Agriculture and Environment, 10: 456–462.
 
Paarlberg R.L. (2002): Governance and Food Security in an Age of Globalization. Washington, D.C., US, International Food Policy Research Institute (IFPRI). Available at https://www.ifpri.org/publication/governance-and-food-security-age-globalization (accesed Nov 20, 2021).
 
Parayil G. (2003): Mapping technological trajectories of the green revolution and the gene revolution from modernization to globalization. Research Policy, 32: 971–990. https://doi.org/10.1016/S0048-7333(02)00106-3
 
Paus E. (2012): Confronting the middle income trap: Insights from small latecomers. Studies in Comparative International Development, 47: 115–138. https://doi.org/10.1007/s12116-012-9110-y
 
Pawlak K., Kołodziejczak M. (2020): The role of agriculture in ensuring food security in developing countries: Considerations in the context of the problem of sustainable food production. Sustainability, 12: 5488. https://doi.org/10.3390/su12135488
 
Pinder S.O. (2009): The Dominican Republic and Central America free trade agreement with the USA: Some concerns. Development in Practice, 19: 227–232. https://doi.org/10.1080/09614520802689485
 
Pinilla V., Rayes A. (2019): How Argentina became a super-exporter of agricultural and food products during the first globalisation (1880–1929). Cliometrica, 13: 443–469. https://doi.org/10.1007/s11698-018-0178-0
 
Pirkle C.M., Poliquin H., Sia D., Kouakou K.J., Sagna T. (2015): Re-envisioning global agricultural trade: Time for a paradigm shift to ensure food security and population health in low-income countries. Global Health Promotion, 22: 60–63. https://doi.org/10.1177/1757975914531029
 
Pirnea I.C., Lanfranchi M., Giannetto C. (2013): Agricultural market crisis and globalization – A tool for small farms. Revista Română de Statistică, 61: 35–45.
 
Pozo S., Sanchez-Fung J.R., Santos-Paulino A.U. (2011): A note on modelling economic growth determinants in the Dominican Republic. Macroeconomics and Finance in Emerging Market Economies, 4: 35–41. https://doi.org/10.1080/17520843.2011.548594
 
Prasad R. (2015): The impact of globalization on India's export and import of agricultural commodities. In: Proceeding of the 10th International Scientific Conference on Economic and Social Development, Miami, Florida, US, Sept 25, 2015: 154–159.
 
Qasim R.S., Shaba S.F., Abdullah A.M. (2020): The role of direct foreign investment in the external agricultural trade in some Arab countries for the period (1995–2017). Plant Archives, 20: 164–171.
 
Qiang W., Niu S., Wang X., Zhang C., Liu A., Cheng S. (2020): Evolution of the global agricultural trade network and policy implications for China. Sustainability, 12: 192. https://doi.org/10.3390/su12010192
 
Reardon T., Barrett C.B. (2000): Agroindustrialization, globalization, and international development: An overview of issues, patterns, and determinants. Agricultural Economics, 23: 195–205.
 
Reardon T., Stamoulis K., Pingali P. (2007): Rural nonfarm employment in developing countries in an era of globalization. Agricultural Economics, 37: 173–183. https://doi.org/10.1111/j.1574-0862.2007.00243.x
 
Reimer J.J., Li M. (2010): Trade costs and the gains from trade in crop agriculture. American Journal of Agricultural Economics, 92: 1024–1039. https://doi.org/10.1093/ajae/aaq046
 
Renard M.C. (1999): The interstices of globalization: The example of fair coffee. Sociologia Ruralis, 39: 484–500. https://doi.org/10.1111/1467-9523.00120
 
Ricardo D. (1819): The Principles of Political Economy and Taxation. London, United Kingdom, John Murray: 85–103.
 
Ringler C. (2005): Globalization – What's in it for the poor in terms of water and food security? In: The 2005 World Water and Environmental Resources Congress, Anchorage, Alaska, US, May 15–19, 2005: 1–10.
 
Rostam K., Jali M., Toriman M. (2010): Impacts of globalization on economic change and metropolitan growth in Malaysia: Some regional implications. The Social Sciences, 5: 293–301. https://doi.org/10.3923/sscience.2010.293.301
 
Salim Z. (2015): Globalisation and agriculture: Optimising trade policies for small farmers. In: Otsubo S. (ed.): Globalization and Development: Leading Issues in Development with Globalization. Tokyo, Japan, Taylor & Francis: 412.
 
Sanchez-Ancochea D. (2006): Development trajectories and new comparative advantages: Costa Rica and the Dominican Republic under globalization. World Development, 34: 996–1015. https://doi.org/10.1016/j.worlddev.2005.11.012
 
Schipanski M.E., Bennett E.M. (2012): The influence of agricultural trade and livestock production on the global phosphorus cycle. Ecosystems, 15: 256–268. https://doi.org/10.1007/s10021-011-9507-x
 
Schwarz J., Mathijs E., Maertens M. (2015): Changing patterns of global agri-food trade and the economic efficiency of virtual water flows. Sustainability, 7: 5542–5563. https://doi.org/10.3390/su7055542
 
Schwarz J., Mathijs E., Maertens M. (2019): A dynamic view on agricultural trade patterns and virtual water flows in Peru. Science of the Total Environment, 683: 719–728. https://doi.org/10.1016/j.scitotenv.2019.05.118
 
Serrano R., Pinilla V. (2014): New directions of trade for the agri-food industry: A disaggregated approach for different income countries, 1963–2000. Latin American Economic Review, 23: 10. https://doi.org/10.1007/s40503-014-0010-6
 
Smith A. (1776): The Wealth Nation. London, United Kingdom, W. Strahan and T. Cadell: 329–346.
 
Song H.Y., Zhang W.S. (2016): An analysis on trade relations and structure between China and ASEAN. In: Proceedings of the 3rd International Symposium – Management, Innovation & Development, Beijing, China, Dec 10–11, 2016: 1262–1270.
 
Svatoš M. (2007): Specific aspects of globalization. Agricultural Economics, 53: 65–68.
 
Swaffield S., Primdahl J. (2010): Globalisation and local agricultural landscapes: Patterns of change, policy dilemmas and research questions. In: Primdahl J., Swaffield S. (eds.): Globalisation and Agricultural Landscapes: Change Patterns and Policy Trends in Developed Countries. Cambridge, United Kingdom, Cambridge University Press: 245–270.
 
Tanaka K., Juska A., Busch L. (1999): Globalization of agricultural production and research: The case of the rapeseed subsector. Sociologia Ruralis, 39: 54–77. https://doi.org/10.1111/1467-9523.00093
 
Todirica I.C., Chiripuci B.C., Toderasc S.A. (2018): Globalisation and food safety implications in developing countries. In: 18th International Multidisciplinary Scientific GeoConference Surveying Geology and Mining Ecology Management (SGEM), Sofia, Bulgaria, Jun 30–July 9, 2018: 415–422.
 
Tongzon J. (2012): The challenge of globalization for the logistics industry: Evidence from Indonesia. Transportation Journal, 51: 5–32. https://doi.org/10.5325/transportationj.51.1.0005
 
Torres R. (2001): Towards a Socially Sustainable World Economy: An Analysis of the Social Pillars of Globalization. Geneva, Switzerland, International Labour Office: 101.
 
Urrego-Mesa A. (2021): Food security, trade specialization, and violence in Colombia (1916–2016). Investigaciones de Historia Económica, 17: 1–15. https://doi.org/10.33231/j.ihe.2021.08.001
 
von Braun J. (2002): Is globalization taking a pause? Implications for international agriculture and food security policy. Quarterly Journal of International Agriculture, 41: 187–190.
 
Winkel T., Bommel P., Chevarría-Lazo M., Cortes G., Del Castillo C., Gasselin P., Léger F., Nina-Laura J.P., Rambal S., Tichit M., Tourrand J.F., Vacher J.J., Vassas-Toral A., Vieira-Pak M., Joffre R. (2016): Panarchy of an indigenous agroecosystem in the globalized market: The quinoa production in the Bolivian Altiplano. Global Environmental Change, 39: 195–204. https://doi.org/10.1016/j.gloenvcha.2016.05.007
 
Yigletu A. (1997): Global agricultural trading system in the post GATT era: Implications for developing countries. Scandinavian Journal of Development Alternatives, 16: 104–119.
 
download PDF

© 2022 Czech Academy of Agricultural Sciences | Prohlášení o přístupnosti