How do local factors shape the regional adoption of geographical indications in Europe? Evidences from France, Italy and Spain

Abstract

The spread of geographical indications (GIs) is quite heterogeneous within the European Union. Some areas show a large number of registered GI products, while others scarcely use this policy tool. In our study, we investigate the relation between several environmental and socio-economic factors and the degree of GI use at regional level in the three leading countries in terms of registered GI products: Italy, France and Spain. To do so, we implement an infrequency of purchase model that allows us to estimate two sets of parameters. In this way we can estimate the effect of each factor on two measures: the probability of observing a new GI registration in a region and the variation of the intensity of protection. Our findings show that marginality conditions, such as the presence of less favored areas or the remoteness of an area, the producers’ attitude to cooperate and the past tradition of registering GI products are the major determinants of the degree of protection sought through GI labels. This allows interesting conclusions to be drawn about the effectiveness of the GI policy in targeting less developed areas, as well as suggesting possible ways to further stimulate the use of GIs for protecting local products.