IDEAS home Printed from https://ideas.repec.org/a/bla/reviec/v16y2008i2p217-233.html
   My bibliography  Save this article

Globalization and Taste Convergence: the Cases of Wine and Beer

Author

Listed:
  • Joshua Aizenman
  • Eileen Brooks

Abstract

This paper investigates changes in cultural consumption patterns for a low-concentration industry: wine and beer. Using data on 38 countries from 1963-2000, there is clear convergence in the consumption of wine relative to beer between 1963 and 2000. Convergence occurs even more quickly within groups of countries that have a higher degree of integration. A key prediction of international trade is confirmed in the data: greater trade integration weakens the association between production and consumption patterns-although the relative consumption of wine can be explained well in 1963 by grape production and latitude, these variables are much less significant in 2000. Despite these "scientific" explanations, there is also a cultural angle to wine consumption. While the relative wine consumption of France and Germany is converging, several Latin American countries fail to converge. The patterns of convergence are consistent with dynamics of adjustment in overlapping generation habit formation models. Copyright © 2007 The Authors.

Suggested Citation

  • Joshua Aizenman & Eileen Brooks, 2008. "Globalization and Taste Convergence: the Cases of Wine and Beer," Review of International Economics, Wiley Blackwell, vol. 16(2), pages 217-233, May.
  • Handle: RePEc:bla:reviec:v:16:y:2008:i:2:p:217-233
    as

    Download full text from publisher

    File URL: http://www.blackwell-synergy.com/links/doi/10.1111/j.1467-9396.2007.00659.x
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Martin J. Osborne & Al Slivinski, 1996. "A Model of Political Competition with Citizen-Candidates," The Quarterly Journal of Economics, Oxford University Press, pages 65-96.
    2. Jody Overland & Christopher D. Carroll & David N. Weil, 2000. "Saving and Growth with Habit Formation," American Economic Review, American Economic Association, pages 341-355.
    3. Steven M. Suranovic & Robert Winthrop, 2005. "Cultural Effects of Trade Liberalization," International Trade 0511003, EconWPA.
    4. Jody Overland & Christopher D. Carroll & David N. Weil, 2000. "Saving and Growth with Habit Formation," American Economic Review, American Economic Association, pages 341-355.
    5. Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, pages 950-959.
    6. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, pages 297-308.
    7. Eckhard Janeba, 2004. "International Trade and Cultural Identity," NBER Working Papers 10426, National Bureau of Economic Research, Inc.
    8. Martin Browning & Annamaria Lusardi, 1996. "Household Saving: Micro Theories and Micro Facts," Journal of Economic Literature, American Economic Association, pages 1797-1855.
    9. Constantinides, George M, 1990. "Habit Formation: A Resolution of the Equity Premium Puzzle," Journal of Political Economy, University of Chicago Press, vol. 98(3), pages 519-543, June.
    10. Azzeddine Azzam & Rigoberto Lopez & Elena Lopez, 2004. "Imperfect Competition and Total Factor Productivity Growth," Journal of Productivity Analysis, Springer, pages 173-184.
    11. Martin Browning & Annamaria Lusardi, 1996. "Household Saving: Micro Theories and Micro Facts," Journal of Economic Literature, American Economic Association, pages 1797-1855.
    12. Azzeddine M. Azzam & Elena Lopez & Rigoberto A. Lopez, 2002. "Imperfect Competition and Total Factor Productivity Growth in U.S. Food Processing," Food Marketing Policy Center Research Reports 068, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    13. Francois, Patrick & van Ypersele, Tanguy, 2002. "On the protection of cultural goods," Journal of International Economics, Elsevier, pages 359-369.
    14. Pollak, Robert A, 1970. "Habit Formation and Dynamic Demand Functions," Journal of Political Economy, University of Chicago Press, vol. 78(4), pages 745-763, Part I Ju.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Holmes, Alexander J. & Anderson, Kym, 2017. "Convergence in National Alcohol Consumption Patterns: New Global Indicators," Journal of Wine Economics, Cambridge University Press, vol. 12(02), pages 117-148, May.
    2. repec:eee:eecrev:v:100:y:2017:i:c:p:1-27 is not listed on IDEAS
    3. Villanueva, Emiliano C. & Castillo-Valero, Juan Sebastián & García-Cortijo, Mª Carmen, 2015. "Who is Drinking Wine in the United States? The Demographic and Socio-Economic Profile of U.S. Wine Consumers (1972-2012)," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 18(4).
    4. Johan F.M.Swinnen & Liesbeth Colen, 2010. "Beer Drinking Nations. The Determinants of Global Beer Consumption," LICOS Discussion Papers 27010, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    5. Andrea Dal Bianco & Vasco Ladislao Boatto & Francesco Caracciolo & Fabio Gaetano Santeramo, 2016. "Tariffs and non-tariff frictions in the world wine trade," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, pages 31-57.
    6. Balogh, Jeremiás Máté, 2016. "A földrajzi távolság, a kulturális hasonlóság és a szabadkereskedelem hatása a borkereskedelemre
      [Effects on the global wine trade of geographical distance, cultural and linguistic similarity, and
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(7), pages 858-881.
    7. Anderson, Kym & Wittwer, Glyn, 2015. "Asia's evolving role in global wine markets," China Economic Review, Elsevier, vol. 35(C), pages 1-14.
    8. Esposti, Roberto & Fastigi, Matteo & Orazi, Francesco & Viganò, Elena, 2015. "The irresistible rise of craft breweries in Italy: magic out of nowhere or just another example of agro-food diversification?," 2015 Fourth Congress, June 11-12, 2015, Ancona, Italy 207271, Italian Association of Agricultural and Applied Economics (AIEAA).
    9. Roberto ESPOSTI & Matteo FASTIGI & Elena VIGANO', 2016. "The Irresistible Rise of the Craft-Brewing Sector in Italy: Can We Explain It?," Working Papers 414, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    10. Andrea Dal Bianco & Vasco Ladislao Boatto & Francesco Caracciolo & Fabio Gaetano Santeramo, 2016. "Tariffs and non-tariff frictions in the world wine trade," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, pages 31-57.

    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration

    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:bla:reviec:v:16:y:2008:i:2:p:217-233. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0965-7576 .

    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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.