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Who gains from Australian generic wine promotion and R&D?

  • Xueyan Zhao

    (Monash University)

  • Kym Anderson

    (Monash University)

  • Glyn Wittwer

The present paper estimates the distributions of aggregate returns from different types of research and promotion investments by the Australian grape and wine industry among grapegrowers, winemakers, domestic and foreign consumers, and the tax office. The results show that most of the gains from cost-reducing R&D in grape and wine production go to producers and that producers get a far larger share of the benefit from export promotion than that from domestic promotion. Foreign consumers of Australian wine also enjoy a significant share of the benefits from Australian R&D. Sensitivity analysis shows that the key results hold for a wide range of parameter values. Copyright Australian Agricultural and Resource Economics Society Inc. and Blackwell Publishing Ltd 2003.

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Article provided by Australian Agricultural and Resource Economics Society in its journal The Australian Journal of Agricultural and Resource Economics.

Volume (Year): 47 (2003)
Issue (Month): 2 (06)
Pages: 181-209

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Handle: RePEc:bla:ajarec:v:47:y:2003:i:2:p:181-209
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  1. Wittwer, Glyn & Anderson, Kym, 2002. "Impact of the GST and Wine Tax Reform on Australia's Wine Industry: A CGE Analysis," Australian Economic Papers, Wiley Blackwell, vol. 41(1), pages 69-81, March.
  2. Xueyan Zhao, 2002. "Who Bears the Burden and Who Receives the Gain? - The Case of GWRDC R&D Investments in the Australian Grape and Wine Industry," Monash Econometrics and Business Statistics Working Papers 15/02, Monash University, Department of Econometrics and Business Statistics.
  3. Zhao, Xueyan & Mullen, John D. & Griffith, Garry R. & Griffiths, William E. & Piggott, Roley R., 2000. "An Equilibrium Displacement Model of the Australian Beef Industry," Research Reports 28007, New South Wales Department of Primary Industries Research Economists.
  4. Zhao, Xueyan & Griffiths, William E. & Griffith, Garry R. & Mullen, John D., 2000. "Probability distributions for economic surplus changes: the case of technical change in the Australian wool industry," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(1), March.
  5. Kym Anderson & Chantal Nielsen, 2002. "Economic Effects of Agricultural Biotechnology Research in the Presence of Price-distorting Policies," Centre for International Economic Studies Working Papers 2002-32, University of Adelaide, Centre for International Economic Studies.
  6. Wittwer, Glyn & Berger, Nick & Anderson, Kym, 2003. "A model of the world's wine markets," Economic Modelling, Elsevier, vol. 20(3), pages 487-506, May.
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