Scoring the efficiency of Portuguese wine exports – an analysis recurring to Stochastic Frontier Models

Abstract

SUMMARYPortuguese wine is recognized as an important source of economic revenues for Portugal. However, revenues from this product declined in most foreign markets in the decade from [2001][2002][2003][2004][2005][2006][2007][2008][2009][2010][2011]. In this paper, we will develop an original attempt to identify the most important determinants of the value of Portuguese wine exports and the efficiency levels for each destination country. Our results revealed that the value of Portuguese wine exports has a positive relationship with the size of the government in each destination country, the rural population of the destination country, and real GDP per capita, among other variables. The efficiency of wine exports increased because of the level of inflation and Foreign Direct Investment per capita in the destination economies. We also found that the most efficient destinations are those where Portuguese is the native language, and two of the less efficient cases are Poland and the United States of America, which are cases that deserve special attention from Portuguese exporters and foreign policies. RESUMOO Vinho português é reconhecido como uma importante fonte de receitas económicas de base agrícola para Portugal. No entanto, as receitas deste produto diminuíram na maioria dos mercados estrangeiros na década 2001-2011. Neste artigo, iremos desenvolver uma tentativa original para identificar os determinantes mais importantes do valor das exportações de vinhos portugueses e os níveis de eficiência para cada país de destino. Os nossos resultados revelaram que o valor das exportações de vinhos portugueses tem uma relação positiva com o tamanho do setor público em cada país de destino, com a população rural do país de destino, e com o PIB real per capita, entre outras variáveis. A eficiência das exportações de vinho aumenta por causa do nível de inflação e do investimento direto estrangeiro per capita nas economias de destino. Também descobrimos que os destinos mais eficientes são aqueles onde o português é a língua nativa, e dois dos casos menos eficientes são a Polónia e os Estados Unidos da América, que são casos que merecem atenção especial por parte dos exportadores portugueses.

Firm characteristics and export performance in Portuguese wine firms

“…The authors argue that the lack of production units' size, poor investment in the commercial area, and the limited options to export to a wide range of countries originate insufficient ability to compete with larger, more experienced firms in international markets. Mourão and Martinho (2016) identify the most important determinants of the Portuguese wine exports and the efficiency levels for each destination country. Results reveal that the value of Portuguese wine export has a positive relationship with the government influence on the economic activity of the country.…”