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Home
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JWE-Articles
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Journal of Wine Economics Volume 8 | 2013 | No. 2
»
Editorial: Introduction to the Issue

Editorial: Introduction to the Issue

AAWE
Pages: 129-130
Full Text PDF
Excerpt
This issue of the Journal of Wine Economics begins with “Modeling Global Wine Markets to 2018: Exchange Rates, Taste Changes, and China’s Import Growth” by Kym Anderson and Glyn Wittwer. Their analysis employs an econometric model based on 2007–2011 data, to forecast a range of likely global wine market scenarios for the next five years. The authors compute a range of alternative simulations for different real exchange and economic growth rates. In addition to finding a continuing trend toward premium wines, all scenarios also suggest that “China’s place in global wine markets is likely to become increasingly more prominent. . . . Not all segments of the industry are projected to benefit, with nonpremium producers facing falling prices if demand for their product continues to dwindle as projected above. But those exporting firms willing to invest sufficiently in building relationships with their Chinese importer/distributor – or in going into grape growing or wine making within China, may well enjoy long-term benefits from such investments.”

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