IDEAS home Printed from https://ideas.repec.org/p/ags/aawewp/164651.html
   My bibliography  Save this paper

The British Columbia Wine Industry: Can It Compete With The Big Guys?

Author

Listed:
  • Cartier, Lee

Abstract

In 1989, the Canada – United States Free Trade Agreement (FTA) was implemented and dramatically changed the course of the wine industry’s development in British Columbia (BC). The FTA forced the industry to make the transition from being highly protected, and inefficient, to a competitive market contender. Although considered initially to be a victim of the FTA, by 2010, the BC wine industry contributed $295.8 million to the BC economy, or 0.15% of provincial GDP, and provided 5,100 direct and indirect jobs; and is now considered by many to be a remarkable BC success story. This investigation traces the evolution of the industry from 2000 to 2010 by examining the structural changes that occurred in the industry’s value chain during that period. The study employs and industry cluster model to identify the relationships between the firms located in the Okanagan region. Results from the study show the growth in value added from all sectors of the value chain and identify several sources of the industry’s competitive advantage: extensive vertical integration, and a strong relationship to the tourism cluster. Conclusions are provided regarding the future challenges and opportunities facing the industry.

Suggested Citation

  • Cartier, Lee, 2014. "The British Columbia Wine Industry: Can It Compete With The Big Guys?," Working Papers 164651, American Association of Wine Economists.
    • Handle: RePEc:ags:aawewp:164651
    DOI: 10.22004/ag.econ.164651
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/164651/files/AAWE_WP147.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.164651?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
    ---><---

    References listed on IDEAS

    as
    1. Mercedes Delgado & Michael E. Porter & Scott Stern, 2010. "Clusters and entrepreneurship," Journal of Economic Geography, Oxford University Press, vol. 10(4), pages 495-518, July.
    2. Michael Porter, 2003. "The Economic Performance of Regions," Regional Studies, Taylor & Francis Journals, vol. 37(6-7), pages 549-578.
    3. Richard Carew, 1998. "The British Columbia Wine Sector and the Canada-U.S. Free Trade Agreement: Strengths and Opportunities," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 20(1), pages 248-258.
    Full references (including those not matched with items on IDEAS)

    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. Neffke, Frank M.H. & Otto, Anne & Weyh, Antje, 2017. "Inter-industry labor flows," Journal of Economic Behavior & Organization, Elsevier, vol. 142(C), pages 275-292.
    2. Russell, Martha G. & Smorodinskaya, Nataliya V., 2018. "Leveraging complexity for ecosystemic innovation," Technological Forecasting and Social Change, Elsevier, vol. 136(C), pages 114-131.
    3. Delgado, Mercedes & Porter, Michael E. & Stern, Scott, 2014. "Clusters, convergence, and economic performance," Research Policy, Elsevier, vol. 43(10), pages 1785-1799.
    4. Mercedes Delgado & Kimberly Zeuli, 2016. "Clusters and Regional Performance," Economic Development Quarterly, , vol. 30(2), pages 117-136, May.
    5. Rivera, Liliana & Sheffi, Yossi & Welsch, Roy, 2014. "Logistics agglomeration in the US," Transportation Research Part A: Policy and Practice, Elsevier, vol. 59(C), pages 222-238.
    6. Ron Boschma, 2015. "Do spinoff dynamics or agglomeration externalities drive industry clustering? A reappraisal of Steven Klepper’s work," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 24(4), pages 859-873.
    7. Simba, Amon & Wang, Yan & del Olmo García, Francisco, 2023. "Deconstructing self-organisation in microentrepreneurship: A social embeddedness perspective," Journal of Business Research, Elsevier, vol. 162(C).
    8. Timothy F. Slaper & Karter M. Harmon & Barry M. Rubin, 2018. "Industry Clusters and Regional Economic Performance: A Study Across U.S. Metropolitan Statistical Areas," Economic Development Quarterly, , vol. 32(1), pages 44-59, February.
    9. Matt Saboe & Simon Condliffe, 2020. "Explaining New Firm Survival: Is the Firm, Owner, or Agglomeration at Fault?," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 46(2), pages 323-343, April.
    10. Tatyana V. Mirolyubova & Dmitry A. Koshcheev, 2022. "System spatial method for assessing an industrial cluster’s impact on the regional socioeconomic development," Journal of New Economy, Ural State University of Economics, vol. 23(4), pages 69-86, January.
    11. Frank Neffke & Anne Otto & Cesar A. Hidalgo, 2016. "The Mobility of Displaced Workers: How the Local Industry Mix Affects Job Search Strategies," CID Working Papers 71, Center for International Development at Harvard University.
    12. Matthias Duschl & Tobias Scholl & Thomas Brenner & Dennis Luxen & Falk Raschke, 2015. "Industry-Specific Firm Growth and Agglomeration," Regional Studies, Taylor & Francis Journals, vol. 49(11), pages 1822-1839, November.
    13. Cheng Shu & Sharon A. Simmons, 2018. "Firm survival in traded industries: does localization moderate the effects of founding team experience?," Small Business Economics, Springer, vol. 50(3), pages 643-655, March.
    14. Liang, Jiaochen & Goetz, Stephan J., 2018. "Technology intensity and agglomeration economies," Research Policy, Elsevier, vol. 47(10), pages 1990-1995.
    15. Diodato, Dario & Neffke, Frank & O’Clery, Neave, 2018. "Why do industries coagglomerate? How Marshallian externalities differ by industry and have evolved over time," Journal of Urban Economics, Elsevier, vol. 106(C), pages 1-26.
    16. Harold (Hal) Wolman & Diana Hincapie, 2015. "Clusters and Cluster-Based Development Policy," Economic Development Quarterly, , vol. 29(2), pages 135-149, May.
    17. Ludovic Dibiaggio & Benjamin Montmartin & Lionel Nesta, 2018. "Regional Alignement and Productivity Growth," Documents de Travail de l'OFCE 2018-25, Observatoire Francais des Conjonctures Economiques (OFCE).
    18. Grashof, Nils, 2020. "Putting the watering can away Towards a targeted (problem-oriented) cluster policy framework," Papers in Innovation Studies 2020/4, Lund University, CIRCLE - Centre for Innovation Research.
    19. Auerswald, Philip & Dani, Lokesh, 2022. "Entrepreneurial opportunity and related specialization in economic ecosystems," Research Policy, Elsevier, vol. 51(9).
    20. Xu, Cheng-Gang & Guo, Di & Jiang, Kun & Yang, Xiyi, 2017. "Clustering, Growth, and Inequality in China," CEPR Discussion Papers 12543, C.E.P.R. Discussion Papers.

    More about this item

    Keywords

    Agribusiness; Industrial Organization; International Development;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:ags:aawewp:164651. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaweeea.html .

    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.