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California and the creation of a modern wine industry : 1860-1919


  • Simpson, James


The very different factor endowments of the New World to those found in Europe implied that the wine industry developed its own style and characteristics. In California production was located at a considerable distance from the main markets on the East Coast, and trade was initially controlled by the East Coast merchants, who imported wines from Europe and purchased California wine in bulk, selling it under their own brands. The problems of marketing and the fight against fraud and adulteration, produced a struggle between the wine-makers and San Francisco’s merchants for the control of the industry, and the creation of the world’s largest, vertically integrated wine company, the California Wine Association.

Suggested Citation

  • Simpson, James, 2008. "California and the creation of a modern wine industry : 1860-1919," IFCS - Working Papers in Economic History.WH wp08-14, Universidad Carlos III de Madrid. Instituto Figuerola.
  • Handle: RePEc:cte:whrepe:wp08-14

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    References listed on IDEAS

    1. Carmen M. Reinhart & Kenneth S. Rogoff, 2004. "The Modern History of Exchange Rate Arrangements: A Reinterpretation," The Quarterly Journal of Economics, Oxford University Press, vol. 119(1), pages 1-48.
    2. Kontorovich, Vladimir, 1990. "Utilization of Fixed Capital and Soviet Industrial Growth," Economic Change and Restructuring, Springer, vol. 23(1), pages 37-50.
    3. Michael Michaely, 1971. "The Responsiveness of Demand Policies to Balance of Payments: Postwar Patterns," NBER Books, National Bureau of Economic Research, Inc, number mich71-1, January.
    4. Kornai, Janos, 1992. "The Socialist System: The Political Economy of Communism," OUP Catalogue, Oxford University Press, number 9780198287766, June.
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    More about this item


    Wine history;

    JEL classification:

    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • N51 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - U.S.; Canada: Pre-1913
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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