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French Wine Exports to China: Evidence from Intra-French Regional Diversification and Competition

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  • Bargain, Olivier

Abstract

While France leads the way in the Chinese import market of wine, China is France's third largest wine export market by value. In this article, I analyze the determinants of France's wine exports to China, differentiated by French wine growing regions. I estimate a simple demand using a dataset on wine shipments of 100 different types of French bottled wines to China between 1998 and 2015. I find a wide range of income and price effects across French regions—a range not unlike those found by studies spanning multiple countries. Bordeaux wines exhibit the largest Chinese income elasticity. However, other French regions appear to catch up. Price elasticity, meanwhile, is particularly low for highly reputable wines, but quite high for wines targeting middle-class customers and wines from regions traditionally known for white wines. (JEL Classifications: F10, F14, L66, Q17)

Suggested Citation

  • Bargain, Olivier, 2020. "French Wine Exports to China: Evidence from Intra-French Regional Diversification and Competition," Journal of Wine Economics, Cambridge University Press, vol. 15(2), pages 134-162, May.
    • Handle: RePEc:cup:jwecon:v:15:y:2020:i:2:p:134-162_2
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    Cited by:

    1. Coralie Haller & Daria Plotkina & Tan Vo-Thanh, 2021. "Social Media Use of Small Wineries in Alsace: Resources and Motivations Analysis," Sustainability, MDPI, vol. 13(15), pages 1-14, July.
    2. Rául Serrano & Juan R. Ferrer & Silvia Abella & Vicente Pinilla, 2023. "International Marketing Strategy And Export Performance In Spanish Wine Firms," Documentos de Trabajo dt2023-03, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
    3. Kym Anderson & Vicente Pinilla, 2022. "Wine's belated globalization, 1845–2025," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(2), pages 742-765, June.
    4. Stephen Bazen & Jean-marie Cardebat, 2022. "Why have Bordeaux wine prices become so difficult to forecast?," Economics Bulletin, AccessEcon, vol. 42(1), pages 124-142.
    5. Jean Marie Cardebat & Philippe Masset & Jean-Philippe Weisskopf, 2020. "Covid-19 and fine wines: the ‘perfect blend’ for a severe headache?," Working Papers hal-03258235, HAL.

    More about this item

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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