IDEAS home Printed from https://ideas.repec.org/a/eee/ecanpo/v81y2024icp153-163.html
   My bibliography  Save this article

Linking Spanish wine farmers to international markets: Is direct export better than indirect export in improving farm performance?

Author

Listed:
  • Fernández-Olmos, Marta
  • Ma, Wanglin
  • Florine, Pecheux-Livat

Abstract

Selecting an appropriate export channel is one of farmers' most important strategic decisions as it determines farm performance. Although direct and indirect exports are two important channels linking farmers to international markets, little is known about whether direct export is better than indirect export in improving farm performance. This study addresses this research gap by analyzing the impact of export channel choice on wine export farm performance, utilizing data collected from 479 wine-exporting farmers from Spain. An inverse probability-weighted regression adjustment estimator addresses the selection bias issue of export channel choice. The results show that the wine export price received by the direct exporters is significantly lower than that received by the indirect exports. Using domestic intermediaries for exportation (i.e. indirect export) can reduce information asymmetry and transaction costs, which enable indirect wine exporters to sell their products at higher prices. However, there are no significant differences between direct and indirect exporters in export volume, value, diversity, and satisfaction. The findings highlight that direct and indirect exports do not generate differentiated profits, and wine farmers should choose one of them that can facilitate their access to international markets.

Suggested Citation

  • Fernández-Olmos, Marta & Ma, Wanglin & Florine, Pecheux-Livat, 2024. "Linking Spanish wine farmers to international markets: Is direct export better than indirect export in improving farm performance?," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 153-163.
    • Handle: RePEc:eee:ecanpo:v:81:y:2024:i:c:p:153-163
    DOI: 10.1016/j.eap.2023.11.027
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0313592623003090
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.eap.2023.11.027?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Khosla, Sunil & Jena, Pradyot Ranjan & Rahut, Dil Bahadur, 2023. "Can rural livelihood programs enhance capabilities and reduce vulnerability to poverty? Evidence from a tribal region of eastern India," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 85-98.
    2. Junpeng Li & Wanglin Ma & Alan Renwick & Hongyun Zheng, 2020. "The impact of access to irrigation on rural incomes and diversification: evidence from China," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 12(4), pages 705-725, September.
    3. Kalinic, Igor & Brouthers, Keith D., 2022. "Entrepreneurial orientation, export channel selection, and export performance of SMEs," International Business Review, Elsevier, vol. 31(1).
    4. Lages, Carmen & Lages, Cristiana Raquel & Lages, Luis Filipe, 2005. "The RELQUAL scale: a measure of relationship quality in export market ventures," Journal of Business Research, Elsevier, vol. 58(8), pages 1040-1048, August.
    5. Danso-Abbeam, Gideon & Baiyegunhi, Lloyd J.S., 2018. "Welfare impact of pesticides management practices among smallholder cocoa farmers in Ghana," Technology in Society, Elsevier, vol. 54(C), pages 10-19.
    6. Vincenza Odorici & Raffaele Corrado, 2004. "Between Supply and Demand: Intermediaries, Social Networks and the Construction of Quality in the Italian Wine Industry," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 8(2), pages 149-171.
    7. Mary E. Lovely & Stuart S. Rosenthal & Shalini Sharma, 2017. "Information, agglomeration, and the headquarters of U.S. Exporters," World Scientific Book Chapters, in: Mary E Lovely (ed.), International Economic Integration and Domestic Performance, chapter 6, pages 93-117, World Scientific Publishing Co. Pte. Ltd..
    8. Manda, J. & Gardebroek, C. & Kuntashula, E. & Alene, A.D., 2018. "Impact of Improved Maize Varieties on Food Security in Eastern Zambia: a doubly robust analysis," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277004, International Association of Agricultural Economists.
    9. Nicole Coviello & Martin Cox, 2006. "The resource dynamics of international new venture networks," Journal of International Entrepreneurship, Springer, vol. 4(2), pages 113-132, September.
    10. Rambocas, Meena & Meneses, Raquel & Monteiro, Carlos & Brito, Pedro Quelhas, 2015. "Direct or indirect channel structures. Evaluating the impact of channel governance structure on export performance," International Business Review, Elsevier, vol. 24(1), pages 124-132.
    11. Junpeng Li & Wanglin Ma & Alan Renwick & Hongyun Zheng, 2020. "The impact of access to irrigation on rural incomes and diversification: evidence from China," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 12(4), pages 705-725, September.
    12. Hongyun Zheng & Wanglin Ma & Gucheng Li, 2021. "Adoption of organic soil amendments and its impact on farm performance: evidence from wheat farmers in China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(2), pages 367-390, April.
    13. Jiang, Xu & Liu, Heng & Fey, Carl & Jiang, Feifei, 2018. "Entrepreneurial orientation, network resource acquisition, and firm performance: A network approach," Journal of Business Research, Elsevier, vol. 87(C), pages 46-57.
    14. Marta Fernández-Olmos & Jorge Rosell-Martínez & Manuel A. Espitia-Escuer, 2009. "Vertical integration in the wine industry: a transaction costs analysis on the Rioja DOCa," Agribusiness, John Wiley & Sons, Ltd., vol. 25(2), pages 231-250.
    15. Julius Manda & Cornelis Gardebroek & Elias Kuntashula & Arega D. Alene, 2018. "Impact of improved maize varieties on food security in Eastern Zambia: A doubly robust analysis," Review of Development Economics, Wiley Blackwell, vol. 22(4), pages 1709-1728, November.
    16. Viviana Celli, 2022. "Causal mediation analysis in economics: Objectives, assumptions, models," Journal of Economic Surveys, Wiley Blackwell, vol. 36(1), pages 214-234, February.
    17. Hongyun Zheng & Wanglin Ma, 2023. "Smartphone-based information acquisition and wheat farm performance: insights from a doubly robust IPWRA estimator," Electronic Commerce Research, Springer, vol. 23(2), pages 633-658, June.
    18. Cattaneo, Matias D., 2010. "Efficient semiparametric estimation of multi-valued treatment effects under ignorability," Journal of Econometrics, Elsevier, vol. 155(2), pages 138-154, April.
    19. Preet S Aulakh & Masaaki Kotabe, 1997. "Antecedents and Performance Implications of Channel Integration in Foreign Markets," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 28(1), pages 145-175, March.
    20. Li, Min & He, Xinming & Sousa, Carlos M.P., 2017. "A review of the empirical research on export channel selection between 1979 and 2015," International Business Review, Elsevier, vol. 26(2), pages 303-323.
    21. Yoshida, Kenichi & Iino, Yoshiaki & Managi, Shunsuke, 2022. "Do Japanese keiretsu promote better CSR activities?," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 452-475.
    22. Leonidou, Leonidas C. & Katsikeas, Constantine S. & Samiee, Saeed, 2002. "Marketing strategy determinants of export performance: a meta-analysis," Journal of Business Research, Elsevier, vol. 55(1), pages 51-67, January.
    23. Nicole E Coviello, 2006. "The network dynamics of international new ventures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(5), pages 713-731, September.
    24. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 488-500.
    25. Hongyun Zheng & Wanglin Ma, 2022. "Impact of ICT adoption on cosmetic expenditure of Chinese residents: an exploration accounting for urban-rural differentials," Applied Economics Letters, Taylor & Francis Journals, vol. 29(14), pages 1286-1291, August.
    26. Ipsmiller, Edith & Brouthers, Keith D. & Dikova, Desislava, 2021. "Which export channels provide real options to SMEs?," Journal of World Business, Elsevier, vol. 56(6).
    27. Oliveira, João S. & Yazdani, Nahid & Cadogan, John W. & Hodgkinson, Ian R. & Tsougkou, Eleni & Jean, Ruey-Jer “Bryan” & Story, Vicky M. & Boso, Nathaniel, 2018. "The empirical link between export entry mode diversity and export performance: A contingency- and institutional-based examination," Journal of Business Research, Elsevier, vol. 88(C), pages 505-512.
    28. Lloyd Chigusiwa & George Kembo & Terrence Kairiza, 2023. "Drought and social conflict in rural Zimbabwe: Does the burden fall on women and girls?," Review of Development Economics, Wiley Blackwell, vol. 27(1), pages 178-197, February.
    29. Sanjeev Agarwal & Sridhar N Ramaswami, 1992. "Choice of Foreign Market Entry Mode: Impact of Ownership, Location and Internationalization Factors," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 23(1), pages 1-27, March.
    30. Christos Karelakis & Konstadinos Mattas & George Chryssochoidis, 2008. "Greek wine firms: determinants of export performance," Agribusiness, John Wiley & Sons, Ltd., vol. 24(2), pages 275-297.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Raul Serrano & Juan Ramón Ferrer & Silvia Abella & Vicente Pinilla, 2024. "Market entry strategy and export destination in the Spanish wine industry," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 70(12), pages 621-632.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhu, Huanyu & Ma, Wanglin & Vatsa, Puneet & Zheng, Hongyun, 2023. "Clean energy use and subjective and objective health outcomes in rural China," Energy Policy, Elsevier, vol. 183(C).
    2. Hongyun Zheng & Wanglin Ma, 2023. "Smartphone-based information acquisition and wheat farm performance: insights from a doubly robust IPWRA estimator," Electronic Commerce Research, Springer, vol. 23(2), pages 633-658, June.
    3. Junpeng Li & Puneet Vatsa & Wanglin Ma, 2023. "Small Acts With Big Impacts: Does Garbage Classification Improve Subjective Well-Being in Rural China?," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 18(3), pages 1337-1363, June.
    4. Keith D. Brouthers & Liang Chen & Sali Li & Noman Shaheer, 2022. "Charting new courses to enter foreign markets: Conceptualization, theoretical framework, and research directions on non-traditional entry modes," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(9), pages 2088-2115, December.
    5. Vatsa, Puneet & Ma, Wanglin & Zheng, Hongyun & Li, Junpeng, 2023. "Climate-smart agricultural practices for promoting sustainable agrifood production: Yield impacts and implications for food security," Food Policy, Elsevier, vol. 121(C).
    6. Wanglin Ma & Puneet Vatsa & Hongyun Zheng & Emmanuel Donkor & Victor Owusu, 2023. "Does Adoption of Information and Communication Technology Reduce Objective and Subjective Well-Being Inequality? Evidence from China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 169(1), pages 55-77, September.
    7. Wanglin Ma & Hongyun Zheng & Peng Yuan, 2022. "Impacts of cooperative membership on banana yield and risk exposure: Insights from China," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(2), pages 564-579, June.
    8. Kahiya, Eldrede T., 2020. "Context in international business: Entrepreneurial internationalization from a distant small open economy," International Business Review, Elsevier, vol. 29(1).
    9. Kalinic, Igor & Brouthers, Keith D., 2022. "Entrepreneurial orientation, export channel selection, and export performance of SMEs," International Business Review, Elsevier, vol. 31(1).
    10. Saeed Samiee & Constantine S. Katsikeas & G. Tomas M. Hult, 2021. "The overarching role of international marketing: Relevance and centrality in research and practice," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(8), pages 1429-1444, October.
    11. Edinam Dope Setsoafia & Wanglin Ma & Alan Renwick, 2022. "Effects of sustainable agricultural practices on farm income and food security in northern Ghana," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 10(1), pages 1-15, December.
    12. Elena Domínguez Romero & Susanne Durst & Antonio Navarro Garcia, 2024. "Rethinking internationalization processes: toward a circular framework," Review of Managerial Science, Springer, vol. 18(11), pages 3363-3394, November.
    13. Xiaoheng Zhang & Wanglin Ma & Puneet Vatsa & Shijie Jiang, 2023. "Short supply chain, technical efficiency, and technological change: Insights from cucumber production," Agribusiness, John Wiley & Sons, Ltd., vol. 39(2), pages 371-386, March.
    14. Ojo, T.O. & Ogundeji, A.A. & Belle, J.A., 2021. "Climate change perception and impact of on-farm demonstration on intensity of adoption of adaptation strategies among smallholder farmers in South Africa," Technological Forecasting and Social Change, Elsevier, vol. 172(C).
    15. Okyere, Charles Yaw & Kornher, Lukas, 2023. "Carbon farming training and welfare: Evidence from Northern Ghana," Land Use Policy, Elsevier, vol. 134(C).
    16. Ankrah Twumasi, Martinson & Jiang, Yuansheng & Asante, Dennis & Addai, Bismark & Akuamoah-Boateng, Samuel & Fosu, Prince, 2021. "Internet use and farm households food and nutrition security nexus: The case of rural Ghana," Technology in Society, Elsevier, vol. 65(C).
    17. Wanglin Ma & Puneet Vatsa & Hongyun Zheng & Yanzhi Guo, 2022. "Does online food shopping boost dietary diversity? Application of an endogenous switching model with a count outcome variable," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 10(1), pages 1-19, December.
    18. Hongyun Zheng & Wanglin Ma & Yanzhi Guo, 2023. "Does nutrition knowledge training improve dietary diversity and nutrition intake? Insights from rural China," Agribusiness, John Wiley & Sons, Ltd., vol. 39(S1), pages 1417-1436, December.
    19. Chandra, Yanto & Coviello, Nicole, 2010. "Broadening the concept of international entrepreneurship: 'Consumers as International Entrepreneurs'," Journal of World Business, Elsevier, vol. 45(3), pages 228-236, July.
    20. Li, Min & He, Xinming & Sousa, Carlos M.P., 2017. "A review of the empirical research on export channel selection between 1979 and 2015," International Business Review, Elsevier, vol. 26(2), pages 303-323.

    More about this item

    Keywords

    Direct export; Indirect export; Wine farm performance; IPWRA estimator; Spain;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecanpo:v:81:y:2024:i:c:p:153-163. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/economic-analysis-and-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.