How Income and Crowding Effects Influence the World Market for French Wines

Candau, Fabien; Deisting, Florent; Schlick, Julie

doi:10.1111/twec.12446

Cited by 4 publications

(5 citation statements)

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“…Transportation costs are mainly associated with land routes in their case, so the presence of mountain chains may matter. This is less the case here: Half of France's trading partners are located on a different continent; moreover, the global wine trade increasingly relies on sea and air transportation (Candau et al, 2017), whereas the containerization allows multiple modes of freight transport (Emlinger & Lamani, 2020). Nonetheless, in unreported estimations, we have also added the presence of mountains chains, which have virtually no impact on our results.…”

Section: Resultsmentioning

confidence: 92%

“…Second, exploiting country heterogeneity along other dimensions (such as endowments, GDP per capita, growth prospect and income inequality) to investigate how different types of wines are exported to different markets seems a promising avenue. In particular, it is possible that prices vary with the wealth of the importing country (Candau et al, 2017). The quantity allocated to each market may also vary with country characteristics (such as the expected growth, for Asian markets for instance).…”

Section: Dynamic Modelmentioning

confidence: 99%

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Trade uncorked: Genetic distance and taste‐related barriers in wine trade

Bargain

Cardebat

Chiappini

2022

American J Agri Economics

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A nascent literature explores the impact of taste differences on trade. In gravity model estimations, the coefficient on geographic distance is large because it tends to capture such (usually unobservable) preference-related frictions. We examine this question in the context of French wine, that is, a cultural good characterized by a great variety of types (i.e. accommodating a large heterogeneity in wine tastes) and of quality levels (from cheap table wine to the finest grands crus). A series of gravity models are estimated using the universe of French bottled wine exports by detailed appellation between 1998 and 2015. We use genetic distance as a proxy for taste differences inherited from biology and culture. We show that this interpretation is not ruled out by other possible roles of genetic distance on trade (i.e., microgeography or nongustatory cultural dimensions such as trust). We find that genetic distance has an independent effect on trade, explaining between 20% and 40% of the coefficient on geographic distance. Dynamic estimates confirm this result and establish both the persistent and contemporaneous effects of genetic differences. A heterogeneous analysis also corroborates previous findings in the literature showing that high-tier goods tend to escape gravity. In addition, we find that premium wines escape the home bias associated with taste differences, possibly illustrating that luxury wines have become global iconic products purchased for status and investment motives rather than for gustatory pleasure.

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Section: Resultsmentioning

confidence: 92%

Section: Dynamic Modelmentioning

confidence: 99%

Trade uncorked: Genetic distance and taste‐related barriers in wine trade

Bargain

Cardebat

Chiappini

2022

American J Agri Economics

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“…The leadership of France as a wine exporter on a global level has been widely described in the literature (Ayuda et al 2020;Ugaglia et al 2019;Candau et al 2017). However, despite being the main European exporter and the main beneficiary of the CAP, France is not the main beneficiary of the measure for the promotion to third countries.…”

Section: The Measure Of Promotion To Third Countries In Francementioning

confidence: 99%

Promotion of European Wines in Third Countries within the Common Market Organisation Framework: The Case of France

2022

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The international wine market has undertaken important structural changes in the first decades of the 21st century, both in terms of demand and offer. In order to mitigate the effect deriving from the increase in competition, the European Union (EU) continues to allocate important resources to increase the competitiveness of the winemaking sector by means of its Common Agricultural Policy (CAP) and the Common Market Organization (CMO). This paper aims to understand which factors have an influence on the correct implementation of the CMO measure of promotion in the principal wine exporter country: France. A fuzzy-set model (fs/QCA) has been utilized, studying a period of 10 years since 2009. Results show that is it possible to obtain a better execution ratio of measure of promotion by adapting some key factors, such as CMO budget allocation. These findings could support French national and regional authorities in the task of planning. Moreover, other Member States (MS) could also benefit, since in the new CAP approach, a higher participation in strategic plans is required for them by the EU.

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“…As previously mentioned, a contrast to the first globalization wave is the geographical extension of wine consumption as incomes of wine‐importing countries grew rapidly from the 1980s (Ayuda et al, 2020a; Bargain, 2020; Candau et al, 2017; Castillo et al, 2016; Dal Bianco et al, 2017; Dascal et al, 2002; Macedo et al, 2020). However, other determining factors of wine trade patterns have had similar effects in the two globalization waves.…”

Section: Bilateral Trade In the World's Wine Marketsmentioning

confidence: 99%

Wine's belated globalization, 1845–2025

Anderson

Pinilla

2021

Applied Eco Perspectives Pol

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In the latest wave of globalization, the share of global wine production crossing national borders has trebled since the mid‐1980s, to more than 40%. Prior to then, wine was confined mostly to southern Europe with very little trade outside Europe. Why was wine globalization so belated? Why did it take so long for wine exports to take off even in the New World regions of European settlement? This article addresses these questions and also seeks to explain the bilateral patterns of wine trade. It concludes by speculating briefly on how wine markets might develop in the foreseeable future.

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How Income and Crowding Effects Influence the World Market for French Wines

Cited by 4 publications

References 46 publications

Trade uncorked: Genetic distance and taste‐related barriers in wine trade

Trade uncorked: Genetic distance and taste‐related barriers in wine trade

Promotion of European Wines in Third Countries within the Common Market Organisation Framework: The Case of France

Wine's belated globalization, 1845–2025

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