IDEAS home Printed from https://ideas.repec.org/a/cup/jwecon/v16y2021i1p68-85_5.html
   My bibliography  Save this article

Dynamics of Buyer-Seller Relations in Norwegian Wine Imports

Author

Listed:
  • Landazuri-Tveteraas, Ursula
  • Asche, Frank
  • Straume, Hans-Martin

Abstract

As for all traded products, aggregated wine imports build on numerous trades at the firm level. To ensure consumers access to a variety of wines with different qualities, importers need to connect to different wine exporters. Some of these relationships will last for a long time, while the duration of others may be short. In this article, we employ transaction-level data to analyze the duration of trade relationships in wine imports to Norway from 2004 to 2014. We find that most relationships are short-lived, as more than 75% of trade relationships end after less than two years. Furthermore, we find that higher-quality wines, as indicated by the import price, increase trade duration. Deeper firm-to-firm trade relationships for more exclusive wines are likely due to higher search costs for high-quality products. The results also show that the size of the initial trade between the partners, or degree of commitment, is a positive determinant for persistent relationships. (JEL Classifications: C41, F14, Q27)

Suggested Citation

  • Landazuri-Tveteraas, Ursula & Asche, Frank & Straume, Hans-Martin, 2021. "Dynamics of Buyer-Seller Relations in Norwegian Wine Imports," Journal of Wine Economics, Cambridge University Press, vol. 16(1), pages 68-85, February.
    • Handle: RePEc:cup:jwecon:v:16:y:2021:i:1:p:68-85_5
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S1931436120000371/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    More about this item

    JEL classification:

    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • Q27 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Issues in International Trade

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:jwecon:v:16:y:2021:i:1:p:68-85_5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/jwe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.