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Explaining bilateral patterns of global wine trade, 1962–2019

Published online by Cambridge University Press:  05 December 2022

German Puga*
Affiliation:
Centre for Global Food and Resources, School of Economics and Public Policy, University of Adelaide, Adelaide SA 5005, Australia Wine Economics Research Centre, School of Economics and Public Policy, University of Adelaide, Adelaide SA 5005, Australia
Alfinura Sharafeyeva
Affiliation:
Centre for Global Food and Resources, School of Economics and Public Policy, University of Adelaide, Adelaide SA 5005, Australia
Kym Anderson
Affiliation:
Wine Economics Research Centre, School of Economics and Public Policy, University of Adelaide, Adelaide SA 5005, Australia Crawford School of Public Policy, Australian National University, Canberra ACT 2601, Australia
*
Corresponding author: German Puga, email: german.puga@adelaide.edu.au

Abstract

This study uses gravity models to explain bilateral patterns of global wine trade since 1962. This is, to our knowledge, the first study on global wine trade covering the second wave of globalization as a whole. The results suggest that the impact of distance, common language, and common colonizer post-1945 on wine trade was lower in the 1991–2019 period than in the 1962–1990 period. We also use gravity models to explain the impact on bilateral wine trade patterns of similarities across countries in the mix of winegrape varieties in their vineyards. Although our models do not allow us to identify causality, the results suggest that countries trade more wine with each other the closer their mix of winegrape varieties.

Type
Article
Copyright
Copyright © The Author(s), 2022. Published by Cambridge University Press on behalf of American Association of Wine Economists

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