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The Role of Culture, Language and Trade Agreements in Global Wine Trade

Author

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  • Balogh, J. M.
  • Jámbor, A.

Abstract

In the progressively globalising world, wine trade is changing shape. In recent decades, major wine producers have suffered a remarkable drop in their domestic wine consumption, while New World wine producers have increased their production potential and induced new demand in foreign markets. These changes have been accompanied by a geographical relocation of wine consumption and trade. The aim of our paper is to analyse the effect of cultural-geographical proximity, free trade and the role of linguistic similarity on bilateral wine trade in the world major wine producer countries, employing balanced panel gravity model. Regression results suggest that larger countries export more wine, while transport costs increase in line with geographical distance, especially for landlocked trading partners. Moreover, global wine export costs are lower if trading partners are culturally similar; have the same religion or both are members of the WTO or have regional trade agreements.

Suggested Citation

  • Balogh, J. M. & Jámbor, A., 2018. "The Role of Culture, Language and Trade Agreements in Global Wine Trade," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 10(3), September.
    • Handle: RePEc:ags:aolpei:281642
    DOI: 10.22004/ag.econ.281642
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    Cited by:

    1. 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.
    2. 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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