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World Wine Exports: What Determined the Success of the ‘New World’ Wine Producers?

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  • Osiris Jorge Parcero
  • Emiliano Villanueva

Abstract

This paper looks at the evolution of the world wine industry in the period 1961-2005. A particular stylized fact is the appearance of non-traditional producing and exporting countries of wine from the beginning of the nineties. We show that the success of these new producing and exporting countries can be explained by the importance of the demand from non-producing countries with little or no tradition of wine consumption, relative to the world demand. This stylized fact is consistent with a testable implication of the switching cost literature and to the best of our knowledge this is the first time that this implication is tested.

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Bibliographic Info

Paper provided by Centre for Research into Industry, Enterprise, Finance and the Firm in its series CRIEFF Discussion Papers with number 1103.

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Date of creation: Jul 2011
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Handle: RePEc:san:crieff:1103

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Keywords: exports; wine; industry dynamics; switching costs; new entrant.;

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