Comparative advantages of EU member states in trade with wine

Petar Borisov, Teodor Radev, Daniela Dimitrova

Abstract: The aim of the current research is to identify the comparative advantage of member states in EU in condition of highly competitive global market of wine. The comparative advantage of every member state in wine trading is estimated according to the EU (28 members) level. The comparative analysis is conducted by using official data given by FAO (www.fao.org) and OIV (www.oiv.org). Members of EU that gain comparative advantage in export for this period of years are United Kingdom (+30%), Italy (+28%), Lithuania (+24%), Latvia (+14%) and Malta (+11%). Member states that lose comparative advantage in export of wine are: Bulgaria (-48%) (dramatic change), Romania (-38%), Cyprus (-25%), Luxemburg (-20%), Portugal (-18%), Belgium (-11%), France (-10%). The group of countries who gain comparative advantage in import include: Latvia (+86%), Luthuania (+84%), Estonia (+38%), Ireland (+28%), Denmark (+24%), Slovakia (+18%) and Sweden (+17%). Dramatic change in comparative advantage in wine import have the following member states: Belgium (-21%), Luxemburg (-16%) and Spain with -10%.

Keywords: comparative advantages; export; import; trade; wine

Date published: 2017-10-09