Italian high quality wine exports: new empirical evidence from a gravity-type model

Italy, one of the first wine producing country in the world, exports its wines to almost all countries of the five continents. However, the five greater importing countries account for 70 percent of Italy’s total wine exports (the USA, Germany, the United Kingdom, Switzerland, and Canada) and so Italy shows only a moderate market diversification. In this paper, an econometric model able to explain the size of wine export flows from Italy to its main importing countries was elaborated and estimated. This model provides useful information that can help to identify the main growing markets where all participants in the wine supply-chain, such as private wineries, joint-ventures, regional and national agencies, and producers’ associations, can unite to concentrate product communication and promotional efforts. The model is an extended version of the “gravity model” that many economists believe a very powerful tool for international trade analysis. In fact, at the empirical level, the gravity model gives very robust estimates and provides a good fit to the observed data.