Intra-industry Trade in a Rapidly Globalizing Industry: The Case of Wine

Anderson, Kym; Francois, Joseph; Nelson, Douglas; Wittwer, Glyn (2016). Intra-industry Trade in a Rapidly Globalizing Industry: The Case of Wine. Review of International Economics, 24(4), pp. 820-836. Wiley Blackwell 10.1111/roie.12239

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This paper overviews the current structure and dynamics of international trade in wine with an emphasis on its intra-industry features. Using network analytic methods, we illustrate developments in the world's wine markets since the mid-1960s around a relatively stable core of countries. Those developments include both evolving demands for wine and, on the supply side, a rapidly emerging group of countries entering the core without displacing the original members. Not surprisingly, given that the analysis is based on bilateral trade in a single product, the developing patterns of intra-industry trade are quite consistent with the patterns revealed in the network analysis.

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