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Analysis of Italian High Quality Wine Exports using the Gravity Model Approach

Author

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  • De Blasi, Giuseppe
  • Seccia, Antonio
  • Carlucci, Domenico
  • Santeramo, Fabio G.

Abstract

Italian wine firms are facing a significant reduction in wine consumption and increasing competition in international markets. In fact, markets are becoming increasingly liberalized and producers of non-EU countries adopt even more aggressive strategies to increase their competitiveness. Nevertheless, demand for high quality wine which includes a large number of Italian wines, is increasing. The aim of this work is to explain the magnitude of the trade flows for high quality wine from Italy to its main importing countries. This objective has been reached by establishing an appropriate econometric model derived from an extended form of the "Gravity Model". This model has been broadly applied to the analysis of international trade because it provides robust estimates. Note that applications to the specific products' trade are still limited in number. The results obtained and the model itself are useful in forecasting potential trends in the exportation of high quality Italian wines. Moreover, it is possible to identify the growing markets where Italian ventures could exploit certain promotional and communication strategies. Finally, with respect to Italian high quality wine these estimates give a quantitative evaluation of the export gains that could result from the enlargement of the EU and from an increasing liberalization in international trade.

Suggested Citation

  • De Blasi, Giuseppe & Seccia, Antonio & Carlucci, Domenico & Santeramo, Fabio G., 2007. "Analysis of Italian High Quality Wine Exports using the Gravity Model Approach," 105th Seminar, March 8-10, 2007, Bologna, Italy 7901, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa105:7901
    DOI: 10.22004/ag.econ.7901
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    1. Seccia, Antonio & Santeramo, Fabio Gaetano & De Blasi, Giuseppe & Carlucci, Domenico, 2007. "Effects of political-economic integration and trade liberalization on exports of Italian Quality Wines Produced in Determined Regions (QWPDR)," MPRA Paper 7730, University Library of Munich, Germany.
    2. Finco, Adele & Padella, Monica & Di Pronio, Guido & Pollonara, Mirco, 2008. "Dinamiche del commercio internazionale dell'olio di oliva italiano: un'analisi prospettica," 2008 XVI Convegno Annuale SIEA - Le Dinamiche del Commercio Agro-alimentare Tra Commodities e Prodotti Differenziati, 5-6 Giugno 2008, Trieste 48194, Italian Society of Agri-food Economics/Società Italiana di Economia Agro-Alimentare (SIEA).
    3. 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.
    4. Hippolyte, Rommell, 2012. "Determinants of Barbados Exports: Preliminary Analysis using a Gravity Model Approach," MPRA Paper 75321, University Library of Munich, Germany, revised Jun 2015.
    5. Adele Finco & Monica Padella & Guido Di Pronio & Mirco Pollonara, 2009. "Dinamiche del commercio internazionale dell?olio di oliva italiano: un?analisi prospettica," Economia agro-alimentare, FrancoAngeli Editore, vol. 11(2), pages 169-185.
    6. Margherita Gerolimetto & Christine Mauracher, 2009. "Struttura ed evoluzione delle esportazioni italiane di vino da tavola e a denominazione di origine," Economia agro-alimentare, FrancoAngeli Editore, vol. 11(3), pages 119-142.

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