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The Impact of TNCs on Agricultural Exports of Developing Countries
Lazarenko M. I.

Lazarenko, Maksym I. (2024) “The Impact of TNCs on Agricultural Exports of Developing Countries.” Business Inform 7:64–70.
https://doi.org/10.32983/2222-4459-2024-7-64-70

Section: International Economic Relations

UDC 330.3:338.4

Abstract:
The article examines the impact of transnational corporations (TNCs) on agricultural exports of developing countries, with a special emphasis on their role in the formation and processing of agri-food products. In the context of globalization and technological change, agriculture has become an important sector of the economy of developing countries, providing economic development and job creation. TNCs, with their financial resources and technological know-how, have a significant impact on the efficiency and competitiveness of agricultural exports, although their impact is often indirect. The article analyzes the transformation of agri-food exports in the context of TNCs’ participation, as well as changes in the structure and volumes of agricultural exports in developing countries. Various forms of TNC participation are considered, including foreign direct investment, contract farming and control of cross-border supply chains. The author emphasizes the role of TNCs in providing the necessary resources for export activities, such as market information, technology and access to international markets. The article also notes that although TNCs significantly contribute to improving the efficiency of agricultural exports, their activities do not always meet the interests of long-term sustainable development of recipient countries. Particular attention is paid to the imbalance of benefits between TNCs and agricultural producers, which leads to significant economic and social challenges for developing countries. The conclusions of the article underline the importance of understanding the role of TNCs in shaping current trends in agricultural exports and the need for further research on their impact in the context of the post-COVID and security crisis.

Keywords: transnational corporations, foreign capital, agriculture, agricultural exports, developing countries, economic development, globalization.

Bibl.: 9.

Lazarenko Maksym I. – Postgraduate Student, Department of Economic Theory and Economic Management Methods, V. N. Karazin Kharkiv National University (4 Svobody Square, Kharkіv, 61022, Ukraine)
Email: [email protected]

List of references in article

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“UNCTAD Handbook of Statistics 2022“. Geneva : United Nations, 2022. https://unctad.org/publication/handbook-statistics-2022
Humphrey, J. “Global Value Chains in the Agrifood Sectors“. Vienna : UNIDO, 2006. https://www.unido.org/sites/default/files/2009-05/Global_value_chains_in_the_agrifood_sector_0.pdf
“World Development Report 2008. Agriculture for Development“. Washington, D.C. : World Bank, 2008. https://openknowledge.worldbank.org/entities/publication/ba969388-b5eb-5155-b8f2-6d323a6e5a52
“UNCTAD Handbook of Statistics 2023“. Geneva; New York : United Nations, 2023. https://unctad.org/publication/handbook-statistics-2023
“Transnational Corporations in World Development. Third Survey“. New York : United Nations, 1983. https://digitallibrary.un.org/record/56967?ln=en
Krueger, R., and Negash, A. “Transnational corporations, coffee production and development“. Paper prepared for the World Investment Report 2009, mimeo.
Rama, R., and Wilkinson, J. Foreign direct investment and agri-food value chains in developing countries: a review of the main issues. Rome: United Nations Food and Agriculture Organization, 2008.

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