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JWE-Articles
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Journal of Wine Economics Volume 13 | 2018 | No. 4 | Selected Proceedings
»
Long-Term Prospects of the International Wine Trade

Long-Term Prospects of the International Wine Trade

Olivier Bargain, Jean-Marie Cardebat, Raphael Chiappini & Corentin Laffitte
JEL Clasification: F14, Q17
Pages: 442-450
Abstract

This article discusses key comparative advantages of wine-producing nations and suggest pro- spective views on their evolution. Our methodology is twofold. First, we study comparative advantages in 16 countries using Porter’s diamond. Then, we report results from a survey in which wine economists are asked to assess the future trade performance of these countries. Results are relatively consistent across methods regarding the future “heavy weights” like China, but also New Zealand and Chile, countries show the greatest potential to succeed in the future global wine trade. It is also expected that Georgia, the United Kingdom, and Australia play an important role, although to a lesser extent. Our findings indicate that com- parative advantages in wine trade are neither uniform nor static; especially, terroir is no longer sufficient. The diamond approach contradicts experts from two countries in particular, France and Argentina, suggesting that experts put great emphasis on demand and market structures as key trade determinants for the future.

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