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The Rise and Fall of the World’s Largest Wine Exporter (And Its Institutional Legacy)

Author

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  • Giulia Meloni
  • Johan Swinnen

Abstract

It is hard to imagine in the 21st global wine economy, but until 50 years ago Algeria was the largest exporter of wine in the world – and by a wide margin. Between 1880 and 1930 Algerian wine production grew dramatically. Equally spectacular is the decline of Algerian wine production: today, Algeria produces and exports little wine. This paper analyzes the causes of the rise and the fall of the Algerian wine industry. There was an important bi-directional impact between developments of the Algerian wine sector and French regulations. French regulations had a major impact on the Algerian wine industry. Vice versa, the growth of the Algerian wine industry triggered the introduction of important wine regulations in France at the beginning of the 20th century and during the 1930s. Important elements of these regulations are still present in the European Wine Policy today.

Suggested Citation

  • Giulia Meloni & Johan Swinnen, 2013. "The Rise and Fall of the World’s Largest Wine Exporter (And Its Institutional Legacy)," LICOS Discussion Papers 32713, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  • Handle: RePEc:lic:licosd:32713
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    File URL: http://feb.kuleuven.be/drc/licos/publications/dp/dp327
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    References listed on IDEAS

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    1. Jules Milhau, 1953. "L'avenir de la viticulture française," Revue Économique, Programme National Persée, vol. 4(5), pages 700-738.
    2. Stéphane BECUWE (GREThA, CNRS, UMR 5113) & Bertrand BLANCHETON (GREThA, CNRS, UMR 5113), 2012. "The dispersion of customs tariffs in France between 1850 and 1913: discrimination in trade policy," Cahiers du GREThA 2012-13, Groupe de Recherche en Economie Théorique et Appliquée.
    3. Pinilla, Vicente & Serrano, Raúl, 2008. "The Agricultural and Food Trade in the First Globalization: Spanish Table Wine Exports 1871 to 1935 – A Case Study," Journal of Wine Economics, Cambridge University Press, vol. 3(02), pages 132-148, December.
    4. Critz, José Morilla & Olmstead, Alan L. & Rhode, Paul W., 1999. "“Horn of Plenty”: The Globalization of Mediterranean Horticulture and the Economic Development of Southern Europe, 1880–1930," The Journal of Economic History, Cambridge University Press, vol. 59(02), pages 316-352, June.
    5. Alessandro Stanziani, 2004. "Wine Reputation and Quality Controls: The Origin of the AOCs in 19th Century France," European Journal of Law and Economics, Springer, vol. 18(2), pages 149-167, September.
    6. Meloni, Giulia & Swinnen, Johan, 2013. "The Political Economy of European Wine Regulations," Journal of Wine Economics, Cambridge University Press, vol. 8(03), pages 244-284, December.
    7. Pinilla, Vicente & Ayuda, Maria-Isabel, 2002. "The political economy of the wine trade: Spanish exports and the international market, 1890 1935," European Review of Economic History, Cambridge University Press, vol. 6(01), pages 51-85, April.
    8. repec:eme:rehizz:s0363-3268(2014)0000030004 is not listed on IDEAS
    9. Scott Rozelle & Johan F.M. Swinnen, 2004. "Success and Failure of Reform: Insights from the Transition of Agriculture," Journal of Economic Literature, American Economic Association, vol. 42(2), pages 404-456, June.
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    Citations

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    Cited by:

    1. Jordi Planas, 2015. "State intervention in wine markets and collective action in France and Spain during the early twentieth century," Documentos de Trabajo (DT-AEHE) 1503, Asociacion Espa–ola de Historia Economica.
    2. Maravall Buckwalter, Laura, 2017. "Factor Endowments and Farm Structure : Algerian Settler Agriculture During the First Globalization (1870-1914)," IFCS - Working Papers in Economic History.WH 26085, Universidad Carlos III de Madrid. Instituto Figuerola.
    3. Fabien Candau & Florent Deisting & Julie Schlick, 2017. "How Income and Crowding Effects Influence the World Market for French Wines," The World Economy, Wiley Blackwell, vol. 40(5), pages 963-977, May.
    4. Pedro Lains, 2017. "Portugal’s wine globalization waves, 1750-2015," Working Papers 0113, European Historical Economics Society (EHES).
    5. Giulia Meloni & Johan Swinnen, 2015. "L’Histoire se répète. Why the liberalization of the EU vineyard planting rights regime may require another French Revolution (And why the US and French Constitutions may have looked very different wit," LICOS Discussion Papers 36715, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    6. Kym Anderson & Joseph Francois & Douglas Nelson & Glyn Wittwer, 2016. "Intra-industry Trade in a Rapidly Globalizing Industry: The Case of Wine," Review of International Economics, Wiley Blackwell, vol. 24(4), pages 820-836, September.

    More about this item

    Keywords

    European agriculture; wine history; regulation; appellations; institutions;

    JEL classification:

    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • N44 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Europe: 1913-
    • N54 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Europe: 1913-
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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