Tariffs and Non-Tariff Frictions in the World Wine Trade

European Review of Agricultural Economics. 43(1):31–57

46 Pages Posted: 27 Apr 2016

See all articles by Andrea Dal Bianco

Andrea Dal Bianco

University of Padova

Vasco Boatto

University of Padova

Francesco Caracciolo

University of Naples Federico II - Department of Agricultural Economics and Policy

Fabio Gaetano Santeramo

University of Foggia

Date Written: September 1, 2014

Abstract

This article empirically investigates the impact of trade barriers on the world wine trade, focusing on trade costs impeding exports, including transport, tariffs, technical barriers and sanitary and phytosanitarystandards. A gravity model is estimated using data from the main importing and exporting countries for the years 1997 to 2010. The Poison Pseudo-Maximum Likelihood (PPML) estimator accounts for heteroskedasticity and the presence of zero trade flows. Our results identify which regulations can adversely affect trade, providing useful information to policy-makers involved in negotiations on trade frictions. While sanitary and phytosanitary measures do not seem to obstruct exports, technical barriers have a varying impact on trade. A decreasing trend for tariffs has largely been compensated by more stringent technical barriers. The overall result is that frictions in the world wine trade have not changed during the past fifteen years.

Keywords: tariffs, technical barriers to trade, sanitary and phytosanitary regulations, gravity model, PPML

JEL Classification: F13, Q17, Q18

Suggested Citation

Dal Bianco, Andrea and Boatto, Vasco and Caracciolo, Francesco and Santeramo, Fabio Gaetano, Tariffs and Non-Tariff Frictions in the World Wine Trade (September 1, 2014). European Review of Agricultural Economics. 43(1):31–57, Available at SSRN: https://ssrn.com/abstract=2770080

Andrea Dal Bianco

University of Padova ( email )

Via 8 Febbraio
Padova, Vicenza 2-35122
Italy

Vasco Boatto

University of Padova ( email )

Via 8 Febbraio, 2
Padova, Vicenza 35122
Italy

Francesco Caracciolo

University of Naples Federico II - Department of Agricultural Economics and Policy ( email )

Naples, Naples 80126
Italy

Fabio Gaetano Santeramo (Contact Author)

University of Foggia ( email )

Largo Papa Giovanni Paolo
Foggia, 71100
Italy

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