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Horizontal Differentiation and Determinants of Wine Exports: Evidence from Portugal

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  • Macedo, Anthony
  • Gouveia, Sofia
  • Rebelo, João

Abstract

Assuming horizontal differentiation and using an expanded gravity model, the main objective of this article is to assess the determinants of Portuguese wine exports. Horizontal differentiation is considered, with still and fortified wines being distinguished, as well as three distinct designations of origin: Vinho Verde, Douro, and Port wines. The results from the period between 2006 and 2016 suggest that wineries and private and public agencies should focus their commercial and policy efforts on countries with high purchasing power and/or with great potential for growth, regardless of whether the customs costs are higher. Moreover, it is concluded that horizontal differentiation influences the export determinants, suggesting there should exist different internationalization strategies for distinct types of wine. (JEL Classifications: F10, F14, L66)

Suggested Citation

  • Macedo, Anthony & Gouveia, Sofia & Rebelo, João, 2020. "Horizontal Differentiation and Determinants of Wine Exports: Evidence from Portugal," Journal of Wine Economics, Cambridge University Press, vol. 15(2), pages 163-180, May.
    • Handle: RePEc:cup:jwecon:v:15:y:2020:i:2:p:163-180_3
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    Citations

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    Cited by:

    1. Anthony Macedo & Sofia Gouveia & João Rebelo, 2020. "Macroeconomic determinants of Port and Douro wine exports: An econometric approach," REGION, European Regional Science Association, vol. 7, pages 1-8.
    2. Macedo, Anthony & Rebelo, João & Gouveia, Sofia, 2019. "Export propensity and intensity in the wine industry: a fractional econometric approach," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 8(3), December.
    3. Kym Anderson & Vicente Pinilla, 2022. "Wine's belated globalization, 1845–2025," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(2), pages 742-765, June.
    4. Roberto Camagni & Roberta Capello & Giovanni Perucca, 2022. "Beyond productivity slowdown: Quality, pricing and resource reallocation in regional competitiveness," Papers in Regional Science, Wiley Blackwell, vol. 101(6), pages 1307-1330, December.
    5. Samuel Faria & Sofia Gouveia & Alexandre Guedes & João Rebelo, 2021. "Transient and Persistent Efficiency and Spatial Spillovers: Evidence from the Portuguese Wine Industry," Economies, MDPI, vol. 9(3), pages 1-20, August.

    More about this item

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco

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