Globalization and Taste Convergence: the Cases of Wine and Beer
AbstractThis paper investigates changes in cultural consumption patterns for a low-concentration industry: wine and beer. Using data on 38 countries from 1963-2000, there is clear convergence in the consumption of wine relative to beer between 1963 and 2000. Convergence occurs even more quickly within groups of countries that have a higher degree of integration. A key prediction of international trade is confirmed in the data: greater trade integration weakens the association between production and consumption patterns-although the relative consumption of wine can be explained well in 1963 by grape production and latitude, these variables are much less significant in 2000. Despite these "scientific" explanations, there is also a cultural angle to wine consumption. While the relative wine consumption of France and Germany is converging, several Latin American countries fail to converge. The patterns of convergence are consistent with dynamics of adjustment in overlapping generation habit formation models. Copyright � 2007 The Authors.
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Review of International Economics.
Volume (Year): 16 (2008)
Issue (Month): 2 (05)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0965-7576
Other versions of this item:
- Aizenman, Joshua & Brooks, Eileen, 2005. "Globalization and taste convergence: The cases of wine and beer," Santa Cruz Department of Economics, Working Paper Series qt99j2n7rf, Department of Economics, UC Santa Cruz.
- Joshua Aizenman & Eileen L. Brooks, 2005. "Globalization and Taste Convergence: The Case of Wine and Beer," NBER Working Papers 11228, National Bureau of Economic Research, Inc.
- Aizenman, Joshua & Brooks, Eileen, 2005. "Globalization and taste convergence: The cases of wine and beer," Santa Cruz Department of Economics, Working Paper Series qt8bk1w5r9, Department of Economics, UC Santa Cruz.
- Aizenman, Joshua & Brooks, Eileen, 2005. "Globalization and taste convergence: The cases of wine and beer," Santa Cruz Center for International Economics, Working Paper Series qt99j2n7rf, Center for International Economics, UC Santa Cruz.
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F15 - International Economics - - Trade - - - Economic Integration
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