Does Participating in Agricultural Global Value Chains Promote Agricultural Growth?

ABSTRACT This study examines the relationship between GVC participation and agricultural value‐added growth in 43 countries over the period 1995–2022. In contrast to prior literature, we disaggregate the agricultural sector into four sub‐sectors namely crop cultivation, animal production, forestry and fishing. Using EXIOBASE‐3 multi‐regional input‐output data, we analyze how backward and forward GVCs affect agricultural growth. The empirical findings reveal that backward GVC participation significantly boosts value‐added growth in agriculture, particularly in crop cultivation and forestry. In developing countries, both backward and forward linkages positively influence agricultural and forestry value‐added, while backward participation adversely affects animal production growth. On the other hand, in developed countries, backward participation exhibits growth‐enhancing effects across agriculture, animal production, and forestry.