Global agricultural value chains and employment growth

Abstract

This paper provides evidence on the job creation effects in response to the expansion of agricultural global value chains (AGVCs) in agrarian economies. By using a constructed panel data set of 140 countries for the period 1991 (Formula presented.) 2015, we find that a greater AGVC participation is associated with an increase in agricultural employment growth. We uncover evidence that the positive job creation impact is mainly driven by the processed food sector downstream of GVCs rather than the raw commodity sector upstream of GVCs. We find substantial heterogeneity of impacts that are more pronounced in lower-middle and high-income countries than in low-income countries.