MAKROEKONOMSKE DETERMINANTE PROIZVODNJE VINA U EUROPSKOJ UNIJI

Vinko Zaninović,Jana Katunar,Hrvoje Katunar

doi:10.17818/emip/2021/1.2

Abstract

This paper focuses on the determinants of wine production in the European wine industry. In the last two decades, the European wine industry has undergone many changes due to the entry of new countries into the world wine market. Although increasing competitiveness became the priority of the European Common Agricultural Policy, wine production and consumption in the EU have decreased in the last two decades, and therefore the aim of this research is to analyse and identify the macroeconomic determinants of wine production, i.e. what factors besides the price influence wine production in selected EU countries and in how they can be controlled. Empirical research was conducted using data for EU member states traditionally engaged in wine production. Panel data on wine production, wine consumption, average wine price, wine imports, wine exports and EU support to the wine sector were collected from secondary sources for 15 wine-producing EU countries and for the period 2009-2018. We estimated the econometric model using pooled OLS, as diagnostic tests indicated that this estimator was the best fit for our data. Our results suggest that domestic demand and domestic (EU) subsidies are the main drivers of wine production. To keep up with New World wine producers, even more emphasis should be placed on promoting the wine drinking culture.

Highlights

During the last two decades, the global wine market has witnessed many changes brought about by the emergence of New World Countries (NWC), Australia, South Africa, New Zealand, Chile, Argentina, the United States, Canada and Uruguay, in the world wine market
The European Union (EU) wine industry is highly fragmented on the production side of the market, due to the long tradition of wine production and the presence of numerous wine producers who have engaged in the production of quality wines
The importance of this research lies in its aim to understand the drivers of wine production in the EU, with wine production and the wine industry in general being one of the pillars of the EU economy, as it is mainly composed of small and medium-sized enterprises located in rural areas, which play a key role in the sustainability of EU regions

Summary

Introduction

During the last two decades, the global wine market has witnessed many changes brought about by the emergence of New World Countries (NWC), Australia, South Africa, New Zealand, Chile, Argentina, the United States, Canada and Uruguay, in the world wine market. The entry of new countries into the world wine market has led to the need for an analysis of the drivers of EU wine production. Considering the fact that New World countries have intensified wine competition in the world wine scene, the idea of conducting this research arose from the need to understand the importance of the market structure of the EU wine industry in creating a competitive market. The importance of this research lies in its aim to understand the drivers of wine production in the EU, with wine production and the wine industry in general being one of the pillars of the EU economy, as it is mainly composed of small and medium-sized enterprises located in rural areas, which play a key role in the sustainability of EU regions. Our research findings can be used to adapt the policies needed to support the wine industry and indirectly support the sustainable economic growth of EU regions

Objectives

Results

Conclusion