Abstract
New Zealand wine industry has been growing rapidly in the recent years both in terms of wineries and exports which inter alia can be attributed to rising industry excellence. Australia, with several similarities to New Zealand in geography and climate, also recorded an impressive growth in the wine sector. This implies that the export growth achieved is not unique to New Zealand wine industry. This study examines the relative performance of the New Zealand wine industry in comparison with the Australian wine industry and concludes that the former outperformed the latter in terms of comparative advantage and competitiveness.
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