Revealing Subtle Competitiveness Nuances in the EU Wine Value Chain by Expanding the Applicability of Elasticities

Conventional methods for assessing competitiveness capture a limited reflection of market adaptability. This limitation needs to be addressed in light of the volatile geopolitical context and shifting trade policies, which shape an environment in which resilience is a fundamental component of competitiveness. This paper contributes to the literature by introducing trade-adjusted elasticities that capture domestic market adaptability. The objective of this research extends beyond developing a novel framework to demonstrate broader implications; it argues for the urgency of aligning market adaptability with strategic resource management to reinforce competitiveness. The European Union's vitiviniculture sector was examined as a case study, with market responsiveness being evaluated through production volumes, trade flows, and unit export values. Data collected from FAOSTAT and the International Trade Centre were used to compute the elasticities. Research findings can support decision-makers in adopting policy measures to enhance competitiveness through targeted interventions that strengthen the adaptability of domestic markets to the dynamic value chain reconfigurations.