Macroeconomic determinants of port and douro wine exports: An econometric approach

Abstract

This study analyses recent trends (2006-2018) in Port and Douro wine exports and estimates their macroeconomic determinants. The results of the gravity equation reveal that the gross domestic product in importing countries is the most important export determinant of both wines, and Douro wine exports are negatively affected by the distance to the destination country, but positively influenced by sharing a common language and the level of wine production in importing countries. Therefore, in order to increase exports, the industry’s strategic decision-makers should pay special attention to the markets in wealthier countries or with a high potential for economic growth, taking into account issues such as market access, adaptation of the market to wine consumption, and regulation.