The Impact of Exchange Rates on French Wine Exports

In this article, we analyze the impact of varying exchange rates on French wine exports using a dynamic Armington panel model for the time period from 2000 to 2011. Our results suggest that French wines have become less competitive during the 2000s. This is due to two factors: rising domestic wine p...

Full description

Saved in:
Bibliographic Details
Published in:Journal of wine economics 2019-02, Vol.14 (1), p.71-89
Main Authors: Cardebat, Jean-Marie, Figuet, Jean-Marc
Format: Article
Language:English
Subjects:
Economic models
Economics and Finance
Exports
Humanities and Social Sciences
Impact analysis
International trade
Pricing
Wines
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:In this article, we analyze the impact of varying exchange rates on French wine exports using a dynamic Armington panel model for the time period from 2000 to 2011. Our results suggest that French wines have become less competitive during the 2000s. This is due to two factors: rising domestic wine prices relative to foreign competitors and the appreciation of the euro against the USD and the GBP. Chinese demand appears to be a key driver of French wine exports. In addition, we find some compositional effects in Bordeaux wine exports. In response to the appreciation of the euro, the share of high-priced wines has increased, suggesting some degree of quality sorting in response to exchange-rate changes. (JEL Classification: F14, F31, Q17)
ISSN:1931-4361
1931-437X
DOI:10.1017/jwe.2019.2