A Study on the Structural Changes of Cashew Nuts Global Trade Network: Focused on Vietnam

Abstract

Purpose This paper aims to analyze the structural changes of cashew nuts global trade network due to changes in the supply and demand of cashew nuts in Vietnam using the degree centrality index and visualizing them. Design/Methodology/Approach This paper analyzes the global cashew nut trade network based on the Degree Centrality, Betweenness Centrality, and Closeness Centrality indexes of Social Network Analysis. The 2000-2009 trade data from the UN Comtrade database was used, and the 2000-2009 and 2010-2019 data were analyzed separately, assuming that Vietnams cashew nuts production structure changed around 2010. Findings With Vietnams recent decline in cashew nuts production, Vietnams index (weighted) was the largest in the in-shell cashews In-degree Centrality and the shelled cashews Out-degree Centrality analysis in 2010-2019. It means that Vietnams influence in the global cashew nuts network has been increased compared to that in 2000-2009 due to increased trade volume and partner countries. Moreover, Betweenness Centrality and Closeness Centrality index shows that Vietnams ability to control the flow of cashew nuts exports and imports and its ability to adapt and react to changes in the global cashews market has been enhanced compared to the past. Research Implications Vietnam was the worlds largest producer of cashew nuts, processing and exporting its domestic produced cashew nuts. However, with the recent decline in domestic production, in-shell cashew nuts have been imported from African countries such as Côte dIvoire. So, a new global food value chain was formed by processing and exporting them. It means a change in Vietnams cashew nuts industry structure and a new South-South cooperation model in the agricultural sector. In other words, developing countries can form a global value chain in the agricultural sector and be mutually win-win.