Beyond the cluster: how wine drives regional economy to success

Abstract

PurposeThis paper aims to analyse how the economic impact of wine in producing regions can be measured. It also seeks to show the relationship between wine cluster performance and regional economic development, through the study of Rioja's recent success in both wine market and distribution of wealth.Design/methodology/approachThe paper uses the input‐output analyses to estimate the economic impact of the wine cluster and its role in regional economy. The case of Rioja is taken as example of regions where wine is the driving economic force.FindingsThe paper finds that Rioja wine cluster specificities may be the cause of the recent outperformance of Riojan economy, in which the wine cluster accounts for a fifth of regional GDP. The increase in wine sales in this region is simultaneous to the spread of welfare among the local population.Originality/valueThe paper shows the extremely deep impact that changes in wine market may arise in wine producing regions' welfare, thus enabling wine sector's main actors to measure wine impact on regional economy.