DOI: 10.32725/978-80-7394-976-1.28

Integration of the Czech Republic’ Food Industry in the Global Value Chains

Ivo Zdráhal, Ivana Blažková, J. Matthew Fannin
Mendel University in Brno, Faculty of Regional Development and International Studies, Department of Regional and Business Economy, Czech Republic, ivo.zdrahal@mendelu.cz
Mendel University in Brno, Faculty of Regional Development and International Studies, Department of Regional and Business Economy, Czech Republic, blazkova@mendelu.cz
Louisiana State University, College of Agriculture, Department of Agricultural Economics & Agribusiness, mfannin@agcenter.lsu.edu


The food and beverages market has undergone dynamic development in recent decades. Among other fundamental changes, the current food system is characterized by changes which tend to put a growing concern on coordination (both horizontal and vertical), integration and competition. The long-term competitiveness and dynamic efficiency of food companies is affected by the way in which the company is embedded in food chains and networks, at present spread globally over multiple countries. Given that integration into global value chains (GVCs) provides opportunities for economic growth and development, the research on firm GVC participation and position has experienced a rapid rise in recent decade. This article investigates the effects of fragmentation of production on the food processing industry in the Czech Republic between 1995 and 2018 using data from Trade in Value Added database. The participation index and the position index are used to evaluate the form of integration of the food processing industry in the Czech Republic. The findings in this study can help inform industrial, agriculture and trade policy makers when assessing the nature of liberalization and structural transformation of agribusiness sectors in their countries as well as when assessing the potential benefits and risks.

Keywords: fragmentation, value added, global value chain, food processing

pages: 188-194



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