Services Development, Technological Innovation, and the Embedded Location of the Agricultural Global Value Chain

Abstract

This study aimed to examine the impact of services development and technological innovation on the embedded location of the agricultural global value chain (GVC), and the interaction between the two in fifty-seven countries (regions) around the world. This study constructed an econometric model for empirical testing based on theoretical analysis. The results showed that services development and technological innovation contributed to the embedded location of the agricultural GVC, and there was a significant substitution effect between them. A sub-group test for different income levels showed that the influence of services development and technological innovation on the embedded location of the agricultural GVC was positive in high-income and upper-middle-income countries (regions), while their influence on the embedded location of the agricultural GVC was negative in lower-middle-income countries (regions). A significant substitution effect between services development and technological innovation is always present. Quantile regression results showed that the influence of services development on the embedded location of the agricultural GVC was significantly positive at all quantile points, but the significant influence of technological innovation and the interaction between the two on the embedded location of the agricultural GVC was mainly concentrated in the low and middle quantile points. From the perspective of services development and technological innovation, this study applied the analysis framework and research methods of the global value chain to the analysis of the global agricultural value chain, expanded the research scope of the global value chain, and provided a theoretical basis for countries (regions) to further deepen their agricultural global production network and agricultural GVC.