Agric. Econ. - Czech, 2022, 68(5):180-188 | DOI: 10.17221/401/2021-AGRICECON

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

Agus Dwi Nugroho ORCID...*,1,2, Zoltan Lakner3
1 Doctoral School of Economic and Regional Sciences, Hungarian University of Agriculture and Life Sciences, Godollo, Hungary
2 Department of Agricultural Socio-Economics, Faculty of Agriculture, Gadjah Mada University, Yogyakarta, Indonesia
3 Institute of Agricultural and Food Economics, Hungarian University of Agriculture and Life Sciences, Godollo, Hungary

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.

Keywords: food security; policy; supply chain; trade

Published: May 18, 2022  Show citation

ACS AIP APA ASA Harvard Chicago Chicago Notes IEEE ISO690 MLA NLM Turabian Vancouver
Nugroho AD, Lakner Z. Impact of economic globalisation on agriculture in developing countries: A review. Agric. Econ. - Czech. 2022;68(5):180-188. doi: 10.17221/401/2021-AGRICECON.
Share...
Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    References

    1. Abbas S., Waheed A. (2017): Trade competitiveness of Pakistan: The revealed comparative advantage approach. Competitiveness Review: An International Business Journal, 27: 462-475. Go to original source...
    2. 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. Go to original source...
    3. Arencibia M.G. (2011): Socialism between globalization and the market: The experience of Europe, China and Vietnam. Review, 2: 105-116.
    4. Atici C. (2005): Liberalization-goals trade-offs. Implications of agricultural trade liberalization for developing countries. Outlook on Agriculture, 34: 83-89. Go to original source...
    5. 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. Go to original source...
    6. 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. Go to original source...
    7. 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. Go to original source...
    8. Bullion A. (2003): Globalization, South Asian agriculture and the WTO. South Asia Economic Journal, 4: 1-17. Go to original source...
    9. 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. Go to original source...
    10. Cheshire L., Woods M. (2013): Globally engaged farmers as transnational actors: Navigating the landscape of agri-food globalization. Geoforum, 44: 232-242. Go to original source...
    11. 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. Go to original source...
    12. 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. Go to original source...
    13. 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. Go to original source...
    14. 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. Go to original source...
    15. Dollar D., Hallward-Driemeier M., Mengistae T. (2006): Investment climate and international integration. World Development, 34: 1498-1516. Go to original source...
    16. Dreher A. (2006): Does globalization affect growth? Evidence from a new index of globalization. Applied Economics, 38: 1091-1110. Go to original source...
    17. Dube O., Vargas J.F. (2013): Commodity price shocks and civil conflict: Evidence from Colombia. Review of Economic Studies, 80: 1384-1421. Go to original source...
    18. 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.
    19. 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. Go to original source...
    20. 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. Go to original source...
    21. 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. Go to original source...
    22. 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. Go to original source...
    23. Ghosh B.N. (2009): Globalization and food policy dilemmas in developing countries: Contextualizing the Indian scenario. Journal of Third World Studies, 26: 107-120.
    24. 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. Go to original source... Go to PubMed...
    25. Gulati A. (2000): Globalization, WTO and food security: Emerging issues and options. Quarterly Journal of International Agriculture, 39: 343-357.
    26. 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. Go to original source...
    27. Hoang H. (2020): The underground economy in transition countries from the perspective of globalization: The case of Vietnam. Revista Amazonia Investiga, 9: 234-242. Go to original source...
    28. Hopewell K. (2013): New protagonists in global economic governance: Brazilian agribusiness at the WTO. New Political Economy, 18: 603-623. Go to original source...
    29. Johnston B.F., Mellor J.W. (1961): The role of agriculture in economic development. American Economic Review, 51: 566-593.
    30. 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. Go to original source...
    31. 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. Go to original source...
    32. 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). Go to original source...
    33. 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. Go to original source...
    34. KOF Swiss Economic Institute (2021): KOF Globalisation Index. KOF Swiss Economic Institute. Available at https://kof.ethz.ch/en/forecasts-and-indicators/indicators/kofglobalisation-index.html (accesed Nov 17, 2021).
    35. 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. Go to original source... Go to PubMed...
    36. 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. Go to original source...
    37. Lin F. (2021): Agriculture exports, child labor and youth education: Evidence from 68 developing countries. Review of International Economics, 30: 490-513. Go to original source...
    38. Losch B. (2004): Debating the multifunctionality of agriculture: From trade negotiations to development policies by the South. Journal of Agrarian Change, 4: 336-360. Go to original source...
    39. Malezieux E. (2000): Global network for pineapple research. Acta Horticulturae, 529: 35-47. Go to original source...
    40. 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. Go to original source...
    41. 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. Go to original source...
    42. 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. Go to original source...
    43. 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. Go to original source...
    44. 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. Go to original source...
    45. 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. Go to original source...
    46. 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. Go to original source...
    47. 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. Go to original source...
    48. Nelson E.J., Helmus M.R., Cavender-Bares J., Polasky S., Lasky 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. Go to original source... Go to PubMed...
    49. 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. Go to original source...
    50. Nigh R. (1997): Organic agriculture and globalization: A Maya associative corporation in Chiapas, Mexico. Human Organization, 56: 427-436. Go to original source...
    51. Nugroho A.D. (2021): Agricultural market information in developing countries: A literature review. Agricultural Economics - Czech, 67: 468-477. Go to original source...
    52. Opara L.U., Mazaud F. (2001): Food traceability from field to plate. Outlook on Agriculture, 30: 239-247. Go to original source...
    53. 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.
    54. 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-andfood-security-age-globalization (accesed Nov 20, 2021).
    55. Parayil G. (2003): Mapping technological trajectories of the green revolution and the gene revolution from modernization to globalization. Research Policy, 32: 971-990. Go to original source...
    56. Paus E. (2012): Confronting the middle income trap: Insights from small latecomers. Studies in Comparative International Development, 47: 115-138. Go to original source...
    57. 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. Go to original source...
    58. Pinder S.O. (2009): The Dominican Republic and Central America free trade agreement with the USA: Some concerns. Development in Practice, 19: 227-232. Go to original source...
    59. Pinilla V., Rayes A. (2019): How Argentina became a superexporter of agricultural and food products during the first globalisation (1880-1929). Cliometrica, 13: 443-469. Go to original source...
    60. 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. Go to original source... Go to PubMed...
    61. 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.
    62. 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. Go to original source...
    63. 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.
    64. 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.
    65. 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. Go to original source...
    66. Reardon T., Barrett C.B. (2000): Agroindustrialization, globalization, and international development: An overview of issues, patterns, and determinants. Agricultural Economics, 23: 195-205. Go to original source...
    67. Reardon T., Stamoulis K., Pingali P. (2007): Rural nonfarm employment in developing countries in an era of globalization. Agricultural Economics, 37: 173-183. Go to original source...
    68. Reimer J.J., Li M. (2010): Trade costs and the gains from trade in crop agriculture. American Journal of Agricultural Economics, 92: 1024-1039. Go to original source...
    69. Renard M.C. (1999): The interstices of globalization: The example of fair coffee. Sociologia Ruralis, 39: 484-500. Go to original source...
    70. Ricardo D. (1819): The Principles of Political Economy and Taxation. London, United Kingdom, John Murray: 85-103.
    71. 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. Go to original source...
    72. 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. Go to original source...
    73. 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.
    74. Sanchez-Ancochea D. (2006): Development trajectories and new comparative advantages: Costa Rica and the Dominican Republic under globalization. World Development, 34: 996-1015. Go to original source...
    75. Schipanski M.E., Bennett E.M. (2012): The influence of agricultural trade and livestock production on the global phosphorus cycle. Ecosystems, 15: 256-268. Go to original source...
    76. 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. Go to original source...
    77. 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. Go to original source... Go to PubMed...
    78. 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. Go to original source...
    79. Smith A. (1776): The Wealth Nation. London, United Kingdom, W. Strahan and T. Cadell: 329-346.
    80. 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.
    81. Svatoš M. (2007): Specific aspects of globalization. Agricultural Economics, 53: 65-68. Go to original source...
    82. 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. Go to original source...
    83. Tanaka K., Juska A., Busch L. (1999): Globalization of agricultural production and research: The case of the rapeseed subsector. Sociologia Ruralis, 39: 54-77. Go to original source...
    84. 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. Go to original source...
    85. Tongzon J. (2012): The challenge of globalization for the logistics industry: Evidence from Indonesia. Transportation Journal, 51: 5-32. Go to original source...
    86. Torres R. (2001): Towards a Socially Sustainable World Economy: An Analysis of the Social Pillars of Globalization. Geneva, Switzerland, International Labour Office: 101.
    87. Urrego-Mesa A. (2021): Food security, trade specialization, and violence in Colombia (1916-2016). Investigaciones de Historia Económica, 17: 1-15. Go to original source...
    88. 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.
    89. 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. Go to original source...
    90. Yigletu A. (1997): Global agricultural trading system in the post GATT era: Implications for developing countries. Scandinavian Journal of Development Alternatives, 16: 104-119.

    This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International (CC BY NC 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return to the content