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Globalization of the Worlds Wine Markets

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  • Anderson, Kym
  • Norman, David

Abstract

Globalization is not new to the world?s wine markets, but its influence over the past decade or so has increased dramatically. This Paper reviews the effects of that on both the Old World and New World. In focusing retrospectively on the period since the late 1980s, it points to the dramatic increase in the industry?s export orientation and quality upgrading in the New World and the consequent competitive pressure on the Old World in key import markets. Looking forward, the Paper draws on a new model of the world?s wine markets that distinguishes non-premium, commercial premium and super-plus premium wines in each of 47 countries or country groups spanning the world. It projects recent developments to 2005, based on income, population and taste trends on the demand side and vine acreage and productivity trends on the supply side of each market. The effect of a slowdown in the global economy in the medium term is also considered. The results expose numerous implications of recent and prospective developments on key wine-exporting regions.

Suggested Citation

  • Anderson, Kym & Norman, David, 2002. "Globalization of the Worlds Wine Markets," CEPR Discussion Papers 3169, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:3169
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    2. Hertel, Thomas W. & Kym Anderson & Joseph Francois & Will Martin, 2002. "Agriculture and Non-Agricultural Liberalization in the Millennium Round," GTAP Working Papers 235, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    3. Noev, Nivelin & Swinnen, Johan F.M., 2001. "The Transition Of The Wine Industry, Policy And Trade In Eastern Europe And The Former Soviet Union," PRG Working Papers 31871, Katholieke Universiteit Leuven, LICOS - Centre for Institutions and Economic Performance.
    4. Nivelin Noev & Johan F.M. Swinnen, 2004. "Eastern Europe and the Former Soviet Union," Chapters, in: Kym Anderson (ed.), The World's Wine Markets, chapter 9, Edward Elgar Publishing.
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    6. Arndt, Channing, 1996. "An Introduction To Systematic Sensitivity Analysis Via Gaussian Quadrature," Technical Papers 28709, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    7. Schamel, Guenter & Anderson, Kym, 2001. "Wine Quality and Regional Reputation: Hedonic Prices for Australia and New Zealand," 2001 Conference (45th), January 23-25, 2001, Adelaide, Australia 125877, Australian Agricultural and Resource Economics Society.
    8. Günter Schamel & Kym Anderson, 2019. "Wine Quality and Varietal, Regional and Winery Reputations: Hedonic Prices for Australia and New Zealand," World Scientific Book Chapters, in: Kym Anderson (ed.), The International Economics of Wine, chapter 10, pages 225-253, World Scientific Publishing Co. Pte. Ltd..
    9. Berger, Nicholas & Anderson, Kym, 1999. "Consumer And Import Taxes In The World Wine Market: Australia In International Perspective," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand 123770, Australian Agricultural and Resource Economics Society.
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    Cited by:

    1. Daniele Curzi & Lucia Pacca & Alessandro Olper, 2013. "Estimating Food Quality from Trade Data: An Empirical Assessment," LICOS Discussion Papers 33913, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    2. Elisa Giuliani & Martin Bell, 2004. "When Micro Shapes the Meso: Learning Networks in a Chilean Wine Cluster," SPRU Working Paper Series 115, SPRU - Science Policy Research Unit, University of Sussex Business School.
    3. Pomarici, Eugenio & Caracciolo, Francesco & Cembalo, Luigi, 2012. "Price Heterogeneity and Vine Homogeneity: An Ordered Logit Hedonic Price Estimation," 2012 International European Forum, February 13-17, 2012, Innsbruck-Igls, Austria 144957, International European Forum on System Dynamics and Innovation in Food Networks.
    4. Claudiu Tiberiu Albulescu, 2020. "Investment Behaviour and Firms’ Financial Performance: A Comparative Analysis Using Firm-Level Data from the Wine Industry," International Journal of Management, Knowledge and Learning, International School for Social and Business Studies, Celje, Slovenia, vol. 9(1), pages 75-94.
    5. Yui-Yip Lau & Adolf Ky Ng & David Guerrero, 2014. "Becoming a major hub in the distribution of wine: Hong Kong as a gate to Asian markets," Post-Print hal-01069882, HAL.
    6. Werdelmann, Thomas, 2014. "Quality and Value Creation on the Premium Wine Market," Journal of Applied Leadership and Management, Hochschule Kempten - University of Applied Sciences, Professional School of Business & Technology, vol. 3, pages 47-72.
    7. Elisa Giuliani & Andrea Morrison & Carlo Pietrobelli & Roberta Rabellotti, 2008. "Why Do Researchers Collaborate with Industry? An analysis of the wine sector in Chile, South Africa and Italy," KITeS Working Papers 217, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised May 2008.
    8. Jacques Calvet, 2005. "Les clusters vitivinicoles français à AOC. Une analyse en termes de biens clubs," Revue d'économie régionale et urbaine, Armand Colin, vol. 0(4), pages 481-506.
    9. Rickard, Bradley J. & Gergaud, Olivier & Ho, Shuay-Tsyr & Hu, Wenjing, 2014. "Trade Liberalization In The Presence Of Domestic Regulations: Impacts Of The Proposed Eu-U.S. Free Trade Agreement On Wine Markets," Working Papers 190670, American Association of Wine Economists.
    10. Cervera Ferrer, Francesc J. & Compés López, Raúl, 2018. "The performance of Spanish wine exports in international markets," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 18(01), June.
    11. Visser, Evert-Jan, 2004. "¿A Chilean wine cluster? governance and upgrading in the phase of internationalization," Desarrollo Productivo 4549, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    12. Wittwer, Glyn & Rothfield, Jeremy, 2005. "Projecting the world wine market from 2003 to 2010," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 13.
    13. Elissaveta Zaharieva & Matthew Gorton & John Lingard, 2004. "An evaluation of marketing practices and market orientation in the Bulgarian wine industry," Post-Communist Economies, Taylor & Francis Journals, vol. 16(2), pages 229-243.
    14. Kym Anderson & Joseph Francois & Douglas Nelson & Glyn Wittwer, 2019. "Intra-Industry Trade in a Rapidly Globalizing Industry: The Case of Wine," World Scientific Book Chapters, in: Kym Anderson (ed.), The International Economics of Wine, chapter 4, pages 91-113, World Scientific Publishing Co. Pte. Ltd..
    15. Cusmano, Lucia & Morrison, Andrea & Rabellotti, Roberta, 2010. "Catching up Trajectories in the Wine Sector: A Comparative Study of Chile, Italy, and South Africa," World Development, Elsevier, vol. 38(11), pages 1588-1602, November.
    16. Glyn Wittwer, 2008. "Will drought erode the competitiveness of Australia's wine industry?," Centre of Policy Studies/IMPACT Centre Working Papers g-173, Victoria University, Centre of Policy Studies/IMPACT Centre.
    17. Xiong, Bo & Beghin, John C. & Marette, Stephan, 2013. "Gains to French champagne makers from tariff liberalization," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150003, Agricultural and Applied Economics Association.
    18. Giuliani, Elisa & Morrison, Andrea & Pietrobelli, Carlo & Rabellotti, Roberta, 2010. "Who are the researchers that are collaborating with industry? An analysis of the wine sectors in Chile, South Africa and Italy," Research Policy, Elsevier, vol. 39(6), pages 748-761, July.
    19. Bardaji, Isabel & Mili, Samir, 2009. "Prospective Trends in Wine Export Markets – Expert Views from Spain," 2009 Conference, August 16-22, 2009, Beijing, China 51084, International Association of Agricultural Economists.
    20. Mencet, M. Nisa & Firat, M. Ziya & Sayin, Cengiz, 2006. "Cointegration analysis of wine export prices for France, Greece and Turkey," 98th Seminar, June 29-July 2, 2006, Chania, Crete, Greece 10104, European Association of Agricultural Economists.
    21. Parcero Osiris J. & Villanueva Emiliano, 2012. "The success of new exporting countries in a traditional Agri-business industry, 1961-2005," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 10(1), pages 1-25, November.
    22. Zhao, Xueyan & Anderson, Kym & Wittwer, Glyn, 2002. "Who Gains from Australian Generic Wine R&D and Promotion?," 2002 Conference (46th), February 13-15, 2002, Canberra, Australia 125627, Australian Agricultural and Resource Economics Society.
    23. Morrison, Andrea & Rabellotti, Roberta, 2017. "Gradual catch up and enduring leadership in the global wine industry," Research Policy, Elsevier, vol. 46(2), pages 417-430.
    24. Kleynhans, Theo E. & Opperman, J.M., 2005. "Determination of priorities of buyers regarding value contributing characteristics of farm land in the Stellenbosch District, South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 44(4), pages 1-15, December.
    25. Curzi, Daniele & Pacca, Lucia, 2015. "Price, quality and trade costs in the food sector," Food Policy, Elsevier, vol. 55(C), pages 147-158.

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    More about this item

    Keywords

    Wine trade; Globalization; Quality upgrading; Projection modelling;
    All these keywords.

    JEL classification:

    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • F15 - International Economics - - Trade - - - Economic Integration
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation

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