Hostname: page-component-586b7cd67f-l7hp2 Total loading time: 0 Render date: 2024-11-20T06:32:35.989Z Has data issue: false hasContentIssue false
  • English
  • Français

Dynamics of Buyer-Seller Relations in Norwegian Wine Imports

Published online by Cambridge University Press:  10 December 2020

Ursula Landazuri-Tveteraas ,
Frank Asche  and
Hans-Martin Straume
Ursula Landazuri-Tveteraas
Affiliation:
Department of Safety, Economics and Planning, University of Stavanger, N-4036Stavanger, Norway; e-mail: [email protected].
Frank Asche
Affiliation:
Food Systems Institute and School of Forest Resources and Conservation, University of Florida, 1741 Museum Road, 183 Rogers Hall Gainesville, FL32611-057, USA and Department of Safety, Economics and Planning, University of Stavanger; e-mail: [email protected].
Hans-Martin Straume*
Affiliation:
Department of Economics, BI Norwegian Business School, P.O. Box 6233, N-5893Bergen, Norway
*
e-mail: [email protected] (corresponding author).
Get access Rights & Permissions [Opens in a new window]

Abstract

As for all traded products, aggregated wine imports build on numerous trades at the firm level. To ensure consumers access to a variety of wines with different qualities, importers need to connect to different wine exporters. Some of these relationships will last for a long time, while the duration of others may be short. In this article, we employ transaction-level data to analyze the duration of trade relationships in wine imports to Norway from 2004 to 2014. We find that most relationships are short-lived, as more than 75% of trade relationships end after less than two years. Furthermore, we find that higher-quality wines, as indicated by the import price, increase trade duration. Deeper firm-to-firm trade relationships for more exclusive wines are likely due to higher search costs for high-quality products. The results also show that the size of the initial trade between the partners, or degree of commitment, is a positive determinant for persistent relationships. (JEL Classifications: C41, F14, Q27)

Keywords

duration of tradetransaction datawine
Type
Articles
Information
Journal of Wine Economics , Volume 16 , Issue 1 , February 2021 , pp. 68 - 85
Copyright
Copyright © American Association of Wine Economists, 2020

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

The authors are grateful for helpful comments from anonymous referees and financial support from the Research Council of Norway under Grant CT # 233836.

References

Anderson, K., and Wittwer, G. (2013). Modeling global wine markets to 2018: Exchange rates, taste changes, and China's import growth. Journal of Wine Economics, 8(2), 131–158.CrossRefGoogle Scholar
Asche, F., Cojocaru, A. L., Gaasland, I., and Straume, H. M. (2018). Cod stories: Trade dynamics and duration for Norwegian cod exports. Journal of Commodity Markets, 12, 71–79.CrossRefGoogle Scholar
Aylward, D. (2003). Mapping Australia's wine exporters. Wine Industry Journal, 68–72.Google Scholar
Ayuda, M., Ferrer-Pérez, H., and Pinilla, V. (2020). Explaining world wine exports in the first wave of globalization, 1848–1938. Journal of Wine Economics, 15(3), 263–283.CrossRefGoogle Scholar
Balogh, J. M., and Jámbor, A. (2017). The global competitiveness of European wine producers. British Food Journal, 119(9), 2076–2088.CrossRefGoogle Scholar
Besedeš, T., and Prusa, T. J. (2006a). Ins, outs, and the duration of trade. Canadian Journal of Economics/Revue canadienne d'économique, 39(1), 266–295.CrossRefGoogle Scholar
Besedeš, T., and Prusa, T. J. (2006b). Product differentiation and duration of US import trade. Journal of International Economics, 70(2), 339–358.CrossRefGoogle Scholar
Campbell, G., and Guibert, N. (2006). Introduction: Old world strategies against New World competition in a globalising wine industry. British Food Journal, 108(4), 233–242.CrossRefGoogle Scholar
Cardebat, J. M., and Figuet, J. M. (2019). The impact of exchange rates on French wine exports. Journal of Wine Economics, 14(1), 71–89.CrossRefGoogle Scholar
Casini, L., Corsi, A. M., Rickertsen, K., Lai, M. B., and Cavicchi, A. (2013). Monopoly and wine: The Norwegian case. British Food Journal, 115(2), 314–326.Google Scholar
Caves, R. E. (1998). Industrial organization and new findings on the turnover and mobility of firms. Journal of Economic Literature, 36(4), 1947–1982.Google Scholar
Caves, R. E. (2007). In praise of the old IO. International Journal of Industrial Organization, 25(1), 1–12.CrossRefGoogle Scholar
Combris, P., Lecocq, S., and Visser, M. (1997). Estimation of a hedonic price equation for Bordeaux wine: Does quality matter? Economic Journal, 107(441), 390–402.CrossRefGoogle Scholar
Corsi, A., and Ashenfelter, O. (2019). Predicting Italian wine quality from weather data and expert ratings. Journal of Wine Economics, 14(3), 234–251.CrossRefGoogle Scholar
Crozet, M., Head, K., and Mayer, T. (2011). Quality sorting and trade: Firm-level evidence for French wine. Review of Economic Studies, 79(2), 609–644.CrossRefGoogle Scholar
Dal Bianco, A., Boatto, V. L., Caracciolo, F., and Santeramo, F. G. (2015). Tariffs and non-tariff frictions in the world wine trade. European Review of Agricultural Economics, 43(1), 31–57.CrossRefGoogle Scholar
Esteve-Pérez, S., Requena-Silvente, F., and Pallardó-Lopez, V. J. (2013). The duration of firm-destination export relationships: Evidence from Spain, 1997–2006. Economic Inquiry, 51(1), 159–180.CrossRefGoogle Scholar
Greene, W. H. (2003). Econometric Analysis. Delhi, India: Pearson Education.Google Scholar
Gustavsen, G. W., and Rickertsen, K. (2019). Personality traits and consumption of wine and beer. Journal of Wine Economics, 14(4), 383–391.CrossRefGoogle Scholar
Hussain, M., Cholette, S., and Castaldi, R. M. (2008). An analysis of globalization forces in the wine industry: Implications and recommendations for wineries. Journal of Global Marketing, 21(1), 33–47.CrossRefGoogle Scholar
Kristiansen, B. D. (2016). -Sjokkert over hva norske vinimportører forteller om andre firmaer [translation:“-Shocked by what Norwegian wine importers tell about competing firms”]. Dagens Næringsliv. Available from https://www.dn.no/smak/2016/05/20/2118/Vin/-sjokkert-over-hva-norske-vinimportrer-forteller-om-andre-firmaer.Google Scholar
Krugman, P. R. (1979). Increasing returns, monopolistic competition, and international trade. Journal of International Economics, 9(4), 469–479.CrossRefGoogle Scholar
Landon, S., and Smith, C. E. (1997). The use of quality and reputation indicators by consumers: The case of Bordeaux wine. Journal of Consumer Policy, 20(3), 289–323.CrossRefGoogle Scholar
María Angulo, A., María Gil, J., Gracia, A., and Sánchez, M. (2000). Hedonic prices for Spanish red quality wine. British Food Journal, 102(7), 481–493.CrossRefGoogle Scholar
Mariani, A., Napoletano, F., Pomarici, E., and Vecchio, R. (2014). Tariff and non-tariff barriers to wine exports and initiatives to reduce their effects. Agricultural Economics Review, 15(1), 5–24.Google Scholar
Mariani, A., Pomarici, E., and Boatto, V. (2012). The international wine trade: Recent trends and critical issues. Wine Economics and Policy, 1(1), 24–40.CrossRefGoogle Scholar
Maurel, C. (2009). Determinants of export performance in French wine SMEs. International Journal of Wine Business Research, 21(2), 118–142.CrossRefGoogle Scholar
Melitz, M. J. (2003). The impact of trade on intra-industry reallocations and aggregate industry productivity. Econometrica, 71(6), 1695–1725.CrossRefGoogle Scholar
Nitsch, V. (2009). Die another day: Duration in German import trade. Review of World Economics, 145(1), 133–154.CrossRefGoogle Scholar
Oczkowski, E. (2001). Hedonic wine price functions and measurement error. Economic Record, 77(239), 374–382.CrossRefGoogle Scholar
Oczkowski, E., and Doucouliagos, H. (2014). Wine prices and quality ratings: A meta-regression analysis. American Journal of Agricultural Economics, 97(1), 103–121.CrossRefGoogle Scholar
Rauch, J. E. (1999). Networks versus markets in international trade. Journal of International Economics, 48(1), 7–35.CrossRefGoogle Scholar
Straume, H.-M. (2017). Here today, gone tomorrow: The duration of Norwegian salmon exports. Aquaculture Economics & Management, 21(1), 88–104.CrossRefGoogle Scholar
Suarez-Ortega, S. J. (2003). Export barriers: Insights from small and medium-sized firms. International Small Business Journal, 21(4), 403–419.CrossRefGoogle Scholar
Townsend, R. F., Kirsten, J., and Vink, N. J. A. E. (1998). Farm size, productivity and returns to scale in agriculture revisited: A case study of wine producers in South Africa. Agricultural Economics, 19(1–2), 175–180.CrossRefGoogle Scholar
Wine Monopoly. (2004). Annual Report and Financial Statement 2014 (Årsberetning og årsregnskap 2014). Available from http://www.nsd.uib.no/polsys/data/filer/aarsmeldinger/AN_2004_52953.pdf.Google Scholar
Wine Monopoly. (2014). Annual Report and Financial Statement 2014 (Årsberetning og årsregnskap 2014). Available from https://www.vinmonopolet.no/arsberetning.Google Scholar
Wiseman, A. E., and Ellig, J. (2007). The politics of wine: Trade barriers, interest groups, and the commerce clause. Journal of Politics, 69(3), 859–875.CrossRefGoogle Scholar
Wittwer, G., and Anderson, K. (2020). A model of global beverage markets. Journal of Wine Economics, 15(3), 330–354.CrossRefGoogle Scholar