The objective of the paper is to investigate how the market structure of grape varieties affects the performance in the wine industry. We examine the export performance of countries in 2000 and 2010 and analyze the market structure hypothesis applied to grape varieties and the technical efficiency of the market structure of grapes on exports performance using a Data Envelopment Analysis (DEA) methodology. Our results are based on a sample of 20 major wine exporting countries. First, only a few countries are efficient. Second, a small number of prime varieties is not a condition to obtain efficiency. Finally, concentration of top varieties is not sufficient to be efficient.
JEL Classification: C61, D40, L11, L66
This article was written by Karl Storchmann