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West vs East: How Different Is Performance in European Winemaking

Author

Listed:
  • Anatoliy G. Goncharuk

    (International Humanitarian University, Ukraine)

  • Ricardo Sellers-Rubio

    (University of Alicante, Spain)

Abstract

This paper aims to find out how much the performance of winemaking has changed during the last decade and what are the main differences of winemaking productivity in the East and West of Europe. Using a sample of Spanish and Ukrainian wineries between 2008 and 2016, the authors estimated productivity change and its decomposition into efficiency change and technological change using Malmquist total factor productivity indices and DEA. Generally, results show a slight increase in total factor productivity in both countries, which is more dynamic in Ukraine. Furthermore, this growth is explained by the confluence of two factors acting with contrary signs. On the one hand, a decrease in wineries’ efficiency derived from their wrong management. On the other hand, a positive improvement in productivity as a consequence of a frontier shift, which is interpreted as technical change. Despite the huge gap in living standards and economic development between Western and Eastern Europe, authors found a shrinking gap in the capital productivity in winemaking of Spain and Ukraine. Together with the positive technological changes this gives hope on improving investment attractiveness of winemaking business in Eastern Europe, but also leaves Spain good chances on further efficient development of winemaking.

Suggested Citation

  • Anatoliy G. Goncharuk & Ricardo Sellers-Rubio, 2018. "West vs East: How Different Is Performance in European Winemaking," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 7(4), pages 185-200, November.
    • Handle: RePEc:ods:journl:v:7:y:2018:i:4:p:185-200
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    References listed on IDEAS

    as
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    5. Ruey-Chyn Tsaur & I-Fei Chen & Yu-Shan Chan, 2017. "TFT-LCD industry performance analysis and evaluation using GRA and DEA models," International Journal of Production Research, Taylor & Francis Journals, vol. 55(15), pages 4378-4391, August.
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    Cited by:

    1. Tamara A. Horobets, 2020. "Measuring Performance of the SMEs: A Case of Ukraine," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 9(4), pages 162-168, December.
    2. Horobets, T. A., 2019. "Value-Added Approach to the SMEs' Performance Measurement," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 8(4), pages 182-188, December.
    3. Goncharuk, A. G., 2019. "Alternative View on Wine Value and Its Measurement," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 8(2), pages 88-106, May.
    4. Haguiga, M. & Amani, L., 2019. "The Impact of Financial Development on Economic Growth," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 8(2), pages 107-116, May.

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    More about this item

    Keywords

    performance; productivity; efficiency; winemaking; technological change; Spain; Ukraine;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco

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