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The International Wine Trade and Its New Export Dynamics (1988–2012): A Gravity Model Approach

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  • J. Sebastián Castillo
  • Emiliano C. Villanueva
  • M. Carmen García‐Cortijo

Abstract

ABSTRACT An acceleration of the wine industry globalization process has occurred in the last decades due to increased competition, the emergence of new producers and exporters, and the existence of new wine consuming countries. All this has led to global changes in production strategies and marketing. The aim of this paper is to analyze the changes that have occurred in the global wine export dynamics and define its determinants; to do so a gravity model was estimated in which (a) the main wine producers and consumers involved in international trade are present, (b) two distinctive scenarios are present: one of continuous change (1988–1999), and one of an established export dynamic (2002–2012), and (c) bulk and bottled wines are considered. The main results show that higher incomes, lower prices, cultural and geographical affinities, and trade agreements promote wine exports; the expansion of bottled wine trade, especially within the EU, is particularly highlighted. [EconLit citations: C40; F14; Q1].

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  • J. Sebastián Castillo & Emiliano C. Villanueva & M. Carmen García‐Cortijo, 2016. "The International Wine Trade and Its New Export Dynamics (1988–2012): A Gravity Model Approach," Agribusiness, John Wiley & Sons, Ltd., vol. 32(4), pages 466-481, November.
    • Handle: RePEc:wly:agribz:v:32:y:2016:i:4:p:466-481
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    File URL: http://hdl.handle.net/10.1002/agr.21463
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    1. Santeramo, F G & Lamonaca, E & Nardone, G & Seccia, A, 2018. "On the Effects of Bilateral Agreements in World Wine Trade On the Effects of Bilateral Agreements in World Wine Trade," 2018 Seventh AIEAA Conference, June 14-15, Conegliano, Italy 275644, Italian Association of Agricultural and Applied Economics (AIEAA).
    2. Ridley, William & Luckstead, Jeff & Devadoss, Stephen, 2022. "Wine: The punching bag in trade retaliation," Food Policy, Elsevier, vol. 109(C).
    3. Santeramo, Fabio G., 2017. "On Non-Tariff Measures and Changes in Trade Routes: From North-North to South-South Trade?," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 263493, European Association of Agricultural Economists.
    4. Nazir Muhammad Abdullahi & Olufemi Adewale Aluko & Xuexi Huo, 2021. "Determinants, efficiency and potential of agri-food exports from Nigeria to the EU: Evidence from the stochastic frontier gravity model," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 67(8), pages 337-349.
    5. Kym Anderson & Vicente Pinilla, 2022. "Wine's belated globalization, 1845–2025," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(2), pages 742-765, June.
    6. Fertö, I., 2017. "Economic Crisis And the Fragility of World Wine Export," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 9(4).
    7. Santeramo, Fabio Gaetano & Lamonaca, Emilia & Nardone, Gianluca & Seccia, Antonio, 2018. "The Benefits of Country-specific Non-Tariff Measures in World Wine Trade," MPRA Paper 90647, University Library of Munich, Germany.
    8. Poomthan Rangkakulnuwat & Rungravee Weravess, 2022. "The gravity model for rice exports: The cases of India and Thailand," Economics Bulletin, AccessEcon, vol. 42(3), pages 1432-1473.
    9. Salahuddin & Javed Iqbal & Misbah Nosheen, 2020. "Economic & Cultural Distance & Regional Integration: Evidence from Gravity Model Using Disaggregated Data for Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 59(2), pages 243-274.
    10. Inmaculada Carrasco & Juan Sebastián Castillo-Valero & Marcos Carchano & Carmen Córcoles, 2023. "Recent evolution of wine exports in a turbulence period: a multiregional input–output analysis," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 11(1), pages 1-22, December.
    11. Lamonaca, Emilia & Seccia, Antonio & Santeramo, Fabio Gaetano, 2023. "Climate cha(lle)nges in global wine production and trade patterns," MPRA Paper 119296, University Library of Munich, Germany.
    12. Liam Pippinato & Simone Blanc & Teresina Mancuso & Filippo Brun, 2020. "A Sustainable Niche Market: How Does Honey Behave?," Sustainability, MDPI, vol. 12(24), pages 1-14, December.
    13. Macedo, Anthony & Rebelo, João & Gouveia, Sofia, 2019. "Export propensity and intensity in the wine industry: a fractional econometric approach," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 8(3), December.
    14. Radovan Kastratović, 2023. "Exporting decision of agricultural firms: The role of foreign direct investment," Agribusiness, John Wiley & Sons, Ltd., vol. 39(4), pages 960-984, October.
    15. Anthony Macedo & Sofia Gouveia & João Rebelo, 2019. "Does Wine Quality Have a Bearing on Exports?," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 11(4), December.

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