Mapping agricultural GVC in the European Union

Kohut, Dominik Article Mapping agricultural GVC in the European Union World Economy and Policy (WEP) Provided in Cooperation with: Prague University of Economics and Business, Faculty of International Relations (FIR) Suggested Citation: Kohut, Dominik (2023) : Mapping agricultural GVC in the European Union, World Economy and Policy (WEP), ISSN 2788-0672, Prague University of Economics and Business, Faculty of International Relations, Center for European Studies, Prague, Vol. 2, Iss. 2, pp. 1-17, https://doi.org/10.18267/j.wep.182 This Version is available at: https://hdl.handle.net/10419/297894 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. 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If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence. https://creativecommons.org/licenses/by/4.0/ 1 Ročník / Volume 2 | Číslo / Issue 2 | 2023WORLD ECONOMY AND POLICY MAPPING AGRICULTURAL GVC INTHEEUROPEAN UNION Dominik Kohut Abstract Agriculture represents just a small part of the production and international trade. Although its share is little compared to the manufacturing and services sector, agriculture is still the source ofanessential product for humankind – food. One ofthetrends that changed international trade significantly inrecent history was globalization. Global value chains (GVC) affect ways ofworking, not just inmanufacturing sectors. This paper focuses onmapping agricultural GVC intheEuropean Union. General GVC indicators such asbackward and forward participation are put inthecontext of employment, primary production, and productivity in agriculture for all EU27 member states. International input-output tables were themain source for GVC analysis. Eurostat and FAO (Food and Agriculture Organization) databases were used for additional sector information and statistics regarding agricultural production. Analysis oftheagricultural sector shows significant differences between various member states in terms of employment, productivity, and GVC participation. Tofully understand these differences, itis also necessary tobring into thecontext data onprimary production inthesector and farm holdings information. Thepaper also covers thevalue flows from industries producing intermediates for agriculture, thevalue added ofthesector, and thedestination where agricultural products are consumed or used as intermediates in the production process. Results ofvalue flow analysis show that most ofthevalue produced intheagricultural sector is used inthefood manufacturing sector ordirectly consumed by households’ final demand. Keywords: Value added, European Union, Trade invalue-added, Value chains, Agriculture, Value flows JEL classification: F10, F60, Q17 Introduction Agriculture has played an essential role in the history of humankind. For a long time, it was the primary sector of production and employment worldwide. After the industrial revolution, however, agriculture’s share started to decrease in terms of both employment and production output. Although agriculture today represents just a tiny fraction of the total economy, its importance is undeniable. Agriculture and the food manufacturing sector are still providing the product necessary for life – food. In recent decades, the agricultural sector has gone through many changes. Many of them are caused by a modern trend – globalization which is present all over the world in various industries. The trend of splitting the production process into various stages placed in different geographical locations allowed many countries and regions to specialize in different parts of the process (Baldwin, 2016; Dicken, 2015). This phenomenon is called global value chains 2 Ročník / Volume 2 | Číslo / Issue 2 | 2023WORLD ECONOMY AND POLICY (GVC). Manufacturing industries provide the best examples of situations where production process fragmentation spreads quickly through transnational corporations’ actions. Global value chains are being examined from different perspectives. The flow of the value added by specific stages, industries, or geographical locations, together with other fundamental GVC indicators, can tell an important story of how various industries or economies behave in time, affect, or are affected by external factors. Manufacturing industries such as automotive, computers, and electronics are the focus areas for most research (see Linden et al., 2009; Pavlínek, 2022). The agricultural sector is not explored in the same depth as some manufacturing or service sectors and often maps just one commodity such as coffee (Gonzalez‐Perez & Gutierrez‐ Viana, 2012; Rifin & Nauly, 2020). This paper tries to fill the gap and map the general information about the agricultural sector in the EU in the context of global value chains. For this, it is necessary to analyze the value flows of intermediates used for agricultural production and the flows of this value further to other sectors or the hands of final consumers. In addition to flows, part of this paper is dedicated to GVC participation indicators of all EU member states. Further, we want to test a hypothesis that large EU27 economies will reach lower values of GVC participation than small economies due to their ability to cover a bigger part of the value chain by themselves. Data from the TiVA database and ICIO tables are used for this analysis, both are published by the OECD. To interpret the results, it is necessary to include general agricultural sectors data such as employment, productivity, or primary production data published by Eurostat and the FAO (Food and Agriculture Organization). GVC and theagricultural sector In recent decades, global value chains (GVC) have shaped the world’s economic landscape. The integration into GVC of various industries differs. Generally, the most fragmented sectors are manufacturing – especially industries such as automotive, electronic components, machinery… (Baldwin & Okubo, 2019). Lower fragmentation causes lower participation values in the services sector. However, it should be mentioned that services are an incremental part of all processes and account for more than 40% of the total value added (Dicken, 2015). Recently, the services sector has become more globalized due to new trends such as digitalization (Heuser & Mattoo, 2017). The agricultural sector is a little different. Nevertheless, it is not an exception, and agriculture is also part of the global economy integrated into GVC. The global value chains are mainly known in the context of manufacturing production. The trend of globalizing production processes is present not just in manufacturing but also in the agricultural sector. The agricultural sector is very closely linked to the food and beverages industry which can be merged and called the agri-food business. (De Backer & Miroudot, 2013) In comparison to the service and manufacturing sectors, agriculture has its specifics that affect how we should look at the whole industry overall and in the GVC context as well. First of all, it’s a land-based sector that did not experience many changes over the centuries before the industrial revolution (Kiple, 2007). In past decades, however, agriculture became very industrialized, adapting many innovations from already established global industries (Weis & Weis, 2007). Even though the agri-food sector may look like an industrialized manufacturing 3 Ročník / Volume 2 | Číslo / Issue 2 | 2023WORLD ECONOMY AND POLICY industry, we still must consider its limitations. Independent of how many new industrial ways of working we implement, it is still grounded in bio-physical processes (Dicken, 2015). Animals, plants, and overall farming land is the fundamental limitation for the whole industry. The land is the least flexible factor of production, which is also a limited and fixed resource. High dependency on weather seasons and biological time necessary for plants to grow, dictate together the dynamics of the agricultural industry (Page, 2002). Blythman (2004) elaborates on the weather seasons and explains that PGST (permanent global summertime) locations are now lucrative investment opportunities for global players in the agro-food industry. De Backer & Miroudot (2013) state that the agri-food industry is led mainly by players engaging in the later stages of the value chain. Retailers influence a large part of the value chain since they work with both importers and exporters. Their negotiating power is high compared to producers, so they can push through their agenda concerning how the product should be grown or harvested. Dicken (2015) explains that production is still a very local process. However, distribution and consumption are exactly the opposite. Big transnational food producers gain much power by investing in PGST (Permanent Global Summertime) locations and using it in their favor in GVC. Scoppola (2022), on the other hand, characterizes the relationship between various value chain stages as highly collaborative. He also suggests that the initiative to coordinate the value chain can come from both upstream-positioned retailers and downstream-positioned farmers and the beginning of the supply chain. The coordination can, in extreme cases, come from the state authority. Swinnen & Maertens (2007) elaborate on this specific case, concluding that state-controlled vertical coordination is usually highly inefficient. This was the finding not only of the analysis based on Eastern European countries with the communist regime but also in developing countries in Africa. The state’s role in the agro-food sector still has some significance since it is one of the industries with the highest level of regulation. Sensitive natural ecosystems are heavily affected by new ways of working in the industry, which sometimes creates environmental disturbances, uses chemical fertilizers, and increasing attempts to grow genetically modified plants are raising many questions on the side of consumers (ETC Group, 2008). The ethical side of GMOs (Genetically Modified Organisms), together with the regulation of food safety, are topics where the government needs to be active. Consumers tend to be very sensitive in their consumption behavior, especially concerning food safety after some food safety scares like swine flu, “mad cow disease”, avian flu, etc. (Dicken, 2015) Approximately one-third of the world’s agri-food trade is a part of the GVC network. Specific examples of raw materials, such as coffee and oil, represent typical goods produced within globally linked value chains (Scoppola, 2022). There are plenty of traditional products, in the agricultural industry, like grains, where the value chain is not complex, and the circuit is simple. On the other hand, there are plenty of high-value agri-food products whose production process is becoming more and more complex. The higher complexity of the production process transfers into higher participation in the global value chains. A great example of such a complex process is provided by Boyd & Watts (1997), on the production process of chicken in the USA. 4 Ročník / Volume 2 | Číslo / Issue 2 | 2023WORLD ECONOMY AND POLICY The previously mentioned high-value product (HVP) category is a well-established definition for agri-food products. These products are usually consumer-oriented, and their high value is determined by the complex production process for most of them. HVP can be divided into three main categories where 1) semi-processed products, for example, vegetable oil, roasted coffee, fresh and frozen meat, flour… 2) highly processed products prepared for consumption. This category is represented by milk products, cheese, cereals … 3) high-value unprocessed products are often also ready for consumption but not necessarily. In the third category, we can put eggs, nuts, fresh or dried vegetables, and fruit. On the other side of the value spectrum, there are bulk products (bulk commodities). This term in the agro-food industry represents low-value but high-volume commodities such as cotton, grains, and oilseeds. Bulk commodities are generally unprocessed and can be considered homogenous products. High-value products account for the majority of exports in comparison to bulk commodities (Womach, 2005). Scholars predominantly focus on developing countries and the agri-food industry in the context of GVC. The general agreement is that low-income countries can boost their development and accelerate growth by participating in GVC, especially in the agricultural sector, where most people are employed in these countries. (Barrett et al., 2019; Humphrey & Memedovic, Olga, 2006; Prete et al., n.d.) Participation in GVC can be naturally beneficial not only to low-income countries from poor regions but also high or middle-income developing countries (Blanco, n.d.; Silvia, 2020). The agricultural sector in the EU is always closely connected to The Common Agricultural Policy (CAP). There is also a link between CAP and Sustainable Development Goals (SDG), especially the ones focusing on the environment (Blanco, n.d.). For example, the CAP in the case of Poland had a positive impact on average salary levels in the agricultural sector in comparison to other sectors, but a big disparity between different farm sizes was observed as well (Smędzik-Ambroży et al., 2019). No paper measures the GVC participation of EU countries in the agricultural sector. Data sources and methodology Behind GVC and value-added calculations stand sophisticated statistical methodologies. The most trusted and commonly used one is a method based on international input-output tables. These tables were used for the first time by Wassily Leontief. Input-output tables can be used for tracking value between industries and countries from the source or user perspective. This provides us with an option to track the flow of the value added from the source country/ industry through the exporting country/industry up to the country of the final demand (The Library of Economics and Liberty, 2019; Stehrer, 2012). International input-output tables are the source for the TiVA (Trade in Value Added) database published by the OECD in collaboration with the WTO. This database contains data on supply chains, component sourcing, international trade, and global economic integration. The latest version published in 2021 contains data for 66 countries, and 45 industries in the period 1995 – 2018 (European University Institute, 2021). The OECD provides the available user-friendly model (for basic GVC indicators) and original ICIO (Inter-Country Input Output) tables (OECD, 2021b). A combination of the OECD database and original ICIO tables was used throughout this paper. 5 Ročník / Volume 2 | Číslo / Issue 2 | 2023WORLD ECONOMY AND POLICY TiVA and ICIO tables published by the OECD use the product classification ISIC (The International Standard Industrial Classification of ALL Economic Activities) instead of the alternative SITC (Standard International Trade Classification). This creates challenges in direct comparisons with other sources like the balance of payments etc. In this paper, for interpretation purposes, we aggregate industries into group and sector categories (more in Appendix 1). The TiVA database has, as with every other GVC data source, some quality concerns linked directly to dependency on the local statistic bureaus that gather and consolidate local data and then share it with other countries. Here we encounter the challenge of not just the quality of shared information but also the delay in providing fresh data. (the latest year in the version published in Q4 2022 is 2018). Another issue with international input-output tables overall is that we look at highly aggregated data that are not reflecting actual firm-level conditions (Vlčková, 2020). Other available alternatives to the TiVA database and ICIO tables could be used such as the WIOD database (43 countries, 56 sectors, period 2000-2014) or GTAP 8 Data Base (129 countries, 57 GTAP commodities, dual year reference 2004 & 2007). This paper opts for only ICIO tables and TiVA database due to the longest available period for all EU member states, and sufficient industry split. Global value chains and global production networks are complex nests of connections between various stages of the supply chain and their interaction with external linkages to nondirect value chain members. To evaluate what is the overall position of a country in GVC, we use a set of standard indicators. The most common one is participation in GVC, which estimates how large a portion of the country’s production and international trade is connected to GVC. This participation considers both upstream and downstream linkages in the value chain. This detail is represented by two sub-indicators. Backward participation shows the share of foreign value added to exports of a specific country. Backward participation represents the upstream part of the value chain before the process comes to the stage executed in the observed country. On the other hand, forward participation shows the link to downstream stages in the value chain that will use products exported from the observed country in their part of the value chain. In other words, it is “the domestic value added sent to third economies”. (WTO, 2018) FWPc, i =Σ pVA c, i, p EXGRc Where VA is the total value added of country c, the industry i embodied in gross exports of country p and EXGR is the total gross exports of value-added country c. BWPc, i =Σ pVA p, c, i EXGRc Where VA is the total value added of country p embodied in gross exports country c & industry i, and EXGR is the total gross exports of value-added country c. 6 Ročník / Volume 2 | Číslo / Issue 2 | 2023WORLD ECONOMY AND POLICY Production and trade intheagricultural industry Before a deep dive into GVC specifics, it is necessary to understand the overall situation in the world economy across various regions. Agriculture plays a different role in different countries, and it is beneficial to compare its significance to see how much it contributes to the country’s output. In Table 1, agriculture has a small share of the total production in comparison to manufacturing and services (the rest of the production). Another fact to look at is the increase in gross output which differs heavily between regions. Agriculture in the EU27 has the slowest-growing gross output (32%) across all regions. This may be caused by the fast growth in developing countries outside of the EU driven by implementing new technologies and development projects (Byerlee et al., 2009). In comparison, East and Southeast (E&SE) Asia experienced a fast increase in the absolute production value driven mostly by China which produced in 2018 14 x times the value of 1995 production. If we look at international trade, the share of agriculture is similar to the share of production in Europe. Even though the value of international trade more than doubled the share of the agricultural sector on international trade decreased over time. In 1995 and 2018 in the EU27, the rest of Europe, and the East and Southeast Asia region, agriculture had a higher share of imports than exports. On the other hand, North America, South and Central America (S&C America), and other regions have positive trade balances. The region that stands out is S&C America, where agriculture represents more than 5% of production and more than 10% of exports from this region. Table 1: Value (bil. USD) and share of agriculture sector on production and international trade Sector Year EU27 Rest of Europe E&SE Asia North America South and Central America Other Regions Production 1995 429 79 474 299 113 459 2018 569 186 2 839 610 297 1977 1995 2.9 % 2 .1 % 3. 2 % 2.0 % 5.4 % 9. 5 % 2018 1. 9 % 1.9 % 5.0 % 1.5 % 5.4 % 8.6 % Export 1995 44 413 32 12 36 2018 111 28 58 83 60 127 1995 2.1 % 0.7 % 1. 0 % 2 .9 % 9.7 % 5.9 % 2018 1. 7 % 1. 6 % 0.9 % 2.6 % 10 . 8 % 3.9 % Import 1995 57 11 33 21 414 2018 134 34 149 74 10 66 1995 2. 8 % 2.0 % 2.7 % 1.9 % 2.6 % 2.1 % 2018 2 .2 % 2. 2 % 2. 5 % 1. 9 % 1. 6 % 1.9 % Source: Author’s calculation based on TiVA database (OECD, 2021) 7 Ročník / Volume 2 | Číslo / Issue 2 | 2023WORLD ECONOMY AND POLICY This paper’s main topic is to evaluate the GVC landscape of the agricultural sector in the European Union. Therefore, it is necessary to look closely at not just a regional overview but also at EU countries individually. Table 2 shows the production per country. Unfortunately, a more precise source of primary data (Eurostat) does not contain data for numerous European countries at the beginning of the period observed in this paper. The visible leader is France, with much higher production output in comparison to the following countries (Italy, Germany, Spain). The four mentioned countries are responsible for almost 60% of the whole EU27 agricultural production. If Poland and the Netherlands were added, these six countries would account for 71% of total production. Obviously, large countries will have higher production output than small countries. To bring the size into perspective, we could calculate agricultural production per capita. However, that would only explain part of the picture since employment share in the agricultural sector varies across the European Union significantly. Based on Table 2, we can analyze the full picture considering the total production value, employment in the agricultural sector, and productivity (production per employee) of this sector in each member state. During the observed period 1995 – 2018, we see a slowly increasing trend in absolute production value. Much slower than in the manufacturing or services sector (Eurostat, 2023b). The interesting part is that this slow increase is maintained while there has been a significant drop in employment during the same period in the agricultural sector. This explains the rapid growth in productivity per employed person, which has more than doubled in countries where we have available data from 1995. The highest productivity is shown by Belgium (169 ths. EUR), Denmark, and the Netherlands, all above 100 thousand per employed person. On the other side, with the lowest productivity, we see Latvia (10.6 ths. EUR), Poland, and Bulgaria. All three are below 20 thousand EUR per employed person. The productivity measurement is affected directly by employment, so it is no surprise that the employment share of the agricultural sector is 1% in Belgium, 2.2% in Denmark, and 2.1% in the Netherlands – all significantly below the EU27 average (4.5%). In contrast, the most extreme case is Romania, with a 22.3% employment rate, followed by Greece (12.3%) and Poland (9.6%). The BENELUX region shows much higher productivity than the EU27 average. This could be caused by the high efficiency of production in these countries. The agricultural sector is the most subsidized in the EU. Surprisingly, the BENELUX countries and Denmark are all below the EU27 average in PSE% (Producer Support Estimate) (Mitchell & Baker, 2019). The results for 2018 production may result from a long-term support strategy from the past. Furthermore, Mccloud & Kumbhakar (2008) analyze the effect of subsidies in the Nordic countries and present a positive connection mainly with technical efficiency, which is the main factor in the production output growth. Another explanation can be found in the main agricultural products produced in various countries. From Graph 4, we can conclude that countries with lower productivity, such as Romania, Greece, and Croatia, focus more on crop production. As previously explained, bulk commodities are the opposite of high-value products like meat, cheese, etc. High-value products are mainly animal-based products, and Graph 4 confirms that countries with a higher share of animal products in their agriculture tend to show higher productivity in this sector. 8 Ročník / Volume 2 | Číslo / Issue 2 | 2023WORLD ECONOMY AND POLICY 1995 Country Production Employment Productivity mEUR % tEUR AUT 6,084 7% 22 . 2 BEL 3% – BGR 15% – CYP 11% – CZE 7% – DEU 3% – DNK 4% – ESP 29,122 9% 25 . 2 EST 303 10% 4 . 4 FIN 4,031 8% 24 . 7 FRA 5% – GRC 20% – HRV 21% – HUN 8% – IRL 5,829 12% 35 . 8 ITA 39,593 7% 29 . 6 LTU 3,013 22% 9 . 4 LUX 262 4% 41 . 2 LVA 21% – MLT 2% – NLD 4% – POL 23% – PRT 12% – ROU 40% – SVK 9% – SVN 971 10% 10 . 7 SWE 4% – EU27 10% – Source: Author’s calculation based on Eurostat data 2018 Production Employment Productivity mEUR %tEUR 6,910 4% 42 . 0 8,168 1% 169 . 2 4,085 7% 19 . 7 617 2% 50 . 3 5,123 3% 34 . 3 52,573 1% 99 . 0 10,157 2% 164 . 4 50,935 4% 61 . 9 737 3% 33 . 5 4,524 4% 47 . 8 75,424 3% 108 . 9 10,739 12% 23 . 1 2,266 6% 21 . 8 8,302 5% 37 . 7 8,658 5% 81 . 8 53,194 4% 60 . 4 7,557 7% 76 . 4 315 1% 103 . 8 680 7% 10 . 6 129 1% 59 . 3 27,329 2% 147 . 2 23,572 10% 14 . 0 7,616 6% 25 . 8 17,198 22% 8 . 9 2,159 2% 36 . 5 1,106 6% 20 . 5 5,702 2% 66 . 4 395,773 5% 43 . 8 Table 2: Overview of agriculture data on production, employment, and productivity 15 Ročník / Volume 2 | Číslo / Issue 2 | 2023WORLD ECONOMY AND POLICY Dicken, P.(2015). Global Shift, Seventh Edition: Mapping theChanging Contours oftheWorld Economy. Guilford Publications. ETC Group. (2008). Who Owns Nature? Corporate Power and theFinal Frontier intheCommodification ofLife. Toronto: ETC Group. https://www.etcgroup.org/files/publication/707/01/etc_won_ report_final_color.pdf European University Institute. (2021). Trade inValue-Added (OECD-WTO). European University Institute. https://www.eui.eu/Research/Library/ResearchGuides/Economics/Statistics/ DataPortal/TiVA Eurostat. (2023a). Database - Agriculture - Eurostat. https://ec.europa.eu/eurostat/web/agriculture/ data/database Eurostat. (2023b). Industrial production statistics. https://ec.europa.eu/eurostat/statisticsexplained/index.php?title=Industrial_production_statistics Gonzalez‐Perez, M., & Gutierrez‐Viana, S. (2012). Cooperation incoffee markets: thecase ofVietnam and Colombia. 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Elsevier. https://doi.org/10.1016/S0731-9053(08)23008-2 Millstone, E., & Lang, T. (2016). TheAtlas ofFood: With aNew Introduction. University ofCalifornia Press. https://www.degruyter.com/document/doi/10.1525/9780520966819/html?lang=de Mitchell, I., & Baker, A. (2019). New Estimates ofEU Agricultural Support. 8. OECD. (2021a). OECD Inter-Country Input-Output (ICIO) Tables - OECD. https://www.oecd.org/sti/ ind/inter-country-input-output-tables.htm OECD. (2021b). Trade inValue Added - OECD. https://www.oecd.org/sti/ind/measuring-trade-invalue-added.htm Page, B. (2002). Agriculture. 242–256. https://doi.org/10.1111/b.9780631235798.2002.x Pavlínek, P.(2022). Relative positions ofcountries inthecore-periphery structure oftheEuropean automotive industry. European Urban and Regional Studies, 29(1), 59–84. https://doi.org/10.1177/09697764211021882 Prete, D. D., Magrini, E., Montalbano, P., & Nenci, S. (n.d.). Global Agro-food Value Chains: new evidence from SSA. 16 Ročník / Volume 2 | Číslo / Issue 2 | 2023WORLD ECONOMY AND POLICY Rifin, A., & Nauly, D. (2020). Theimpact ofinvolvement intheglobal value chain oncoffee farmers inIndonesia: Case study ofMargamulya Coffee Producer Cooperative and Mitra Malabar Cooperative, Bandung, Indonesia (Working Paper No. 1143). ADBI Working Paper Series. https://www.econstor.eu/handle/10419/238500 Scoppola, M. (2022). Agriculture, food and global value chains: issues, methods and challenges. Bio - Based and Applied Economics, 11(2), 91–92. https://doi.org/10.36253/bae-13517 Silvia, N. (2020). Mapping global value chain (GVC) participation, positioning and vertical specialization inagriculture and food. FAO. https://doi.org/10.4060/cb0850en Smędzik-Ambroży, K., Guth, M., Stępień, S., & Brelik, A. (2019). TheInfluence oftheEuropean Union’s Common Agricultural Policy ontheSocio-Economic Sustainability ofFarms (theCase ofPoland). Sustainability, 11(24), 7173. https://doi.org/10.3390/su11247173 Stehrer, R. (2012). Trade inValue Added and theValued Added inTrade. WIIW. https://www.wiiw. ac.at/trade-in-value-added-and-the-valued-added-in-trade-dlp-2620.pdf Sustainable Food System Ireland. (2020). Agriculture & Food inIreland -. https://www.sfsi.ie/ agriculture-food-ireland/ Swinnen, J. F. M., & Maertens, M. (2007). Globalization, privatization, and vertical coordination infood value chains indeveloping and transition countries. Agricultural Economics, 37(s1), 89–102. https://doi.org/10.1111/j.1574-0862.2007.00237.x TheLibrary ofEconomics and Liberty. (2019). Wassily Leontief. Econlib. https://www.econlib.org/ library/Enc/bios/Leontief.html TheScience Agriculture. (2022, October 21). 10 Most Produced Agricultural Commodities from Germany. TheScience Agriculture. https://scienceagri.com/10-most-producedagricultural-commodities-from-germany/ United Nations (Ed.). (2008). International Standard industrial classification ofall economic activities (ISIC) (Rev. 4). United Nations. Vlčková, J. (2020). Global production networks inCentral European Countries: thecase oftheVisegrad Group. https://oeconomica.vse.cz/publikace/ global-production-networks-in-central-european-countries-the-case-of-the-visegrad-group/ Weis, A. J., & Weis, T. (2007). TheGlobal Food Economy: TheBattle for theFuture ofFarming. Zed Books. Womach, J. (2005, June 16). Agriculture: AGlossary ofTerms, Programs, and Laws, 2005 Edition [Report]. UNT Digital Library. https://digital.library.unt.edu/ark:/67531/metacrs7246/ WTO. (2018). Trade inValue Added and Global Value Chains - Country profiles explanatory notes. WTO. https://www.wto.org/english/res_e/statis_e/miwi_e/explanatory_notes_e.pdf Dominik Kohut is a2nd year Ph.D.student intheDepartment ofInternational Economic Relations atPrague University ofEconomics and Business. His research interests include Trade inValue Added, Global Value Chains, Agriculture Sector, and International Trade. Passionate about understanding the intricacies of international economic relations, Dominik aims to contribute valuable insights tothefield through his research and academic pursuits. 17 Ročník / Volume 2 | Číslo / Issue 2 | 2023WORLD ECONOMY AND POLICY Appendix 1 Code Industry 6 Sectors 4 Sectors 3 Sectors Total D01T02 Agriculture, hunting and forestry Agriculture, forestry and fishing Agriculture Agriculture Total D03 Fishing and aquaculture Agriculture, forestry and fishing Agriculture Agriculture Total D05T09 Mining and quarrying Mining and quarrying Manufacturing Manufacturing Total D10T12 Food products, beverages and tobacco Food products, beverages and tobacco Food manufacturing Manufacturing Total D13T15 Textiles, wearing apparel, leather and related products Manufacturing Manufacturing Manufacturing Total D16T18 Wood and paper products; printing Manufacturing Manufacturing Manufacturing Total D19T23 Chemicals and non-metallic mineral products Manufacturing Manufacturing Manufacturing Total D24T25 Basic metals and fabricated metal products Manufacturing Manufacturing Manufacturing Total D26T27 Computers, electronic and electrical equipment Manufacturing Manufacturing Manufacturing Total D28 Machinery and equipment, nec Manufacturing Manufacturing Manufacturing Total D29T30 Transport equipment Manufacturing Manufacturing Manufacturing Total D31T33 Other manufacturing; repair and installation ofmachinery and equipment Manufacturing Manufacturing Manufacturing Total D35T39 Electricity, gas, water supply, sewerage, waste and remediation services Electricity, gas, water supply, sewerage, waste and remediation services Services Services Total D41T43 Construction Construction Services Services Total D45T56 Distributive trade, transport, accommodation and food services Total business sector services Services Services Total D58T63 Information and communication Total business sector services Services Services Total D64T66 Financial and insurance activities Total business sector services Services Services Total D68 Real estate activities Total business sector services Services Services Total D69T82 Other business sector services Total business sector services Services Services Total D84T98 Public admin, education and health; social and personal services Public admin, education and health; social and personal services Services Services Total