Does infant industry argument justify diversification policy in Argentinean wine sector?
Author InfoKhachatryan, N. Schuele, H. Khachatryan, A. Abstract Since 1994 Argentinean government implemented the diversification policy to reduce wine supply in the domestic market and stabilize prices through reducing the share of grapes allocated for wine production in favour of must production. The policy has set a minimum percentage of grapes for concentrated grape must (CGM) production for every wine maker. The research aims to investigate the effects of the policy on the sector applying spatial equilibrium analysis, based on the model of Interregional Trade of Wine products in Argentina. The qualitative analysis of the sector under the current policy revealed, that the policy had a) no impact on the grape segment, b) a slight positive impact on grape must production due to 14% increased grapes reallocated from wine sector, and c) an expected but modest 20% decrease of wine production. The anticipated increase of wine and grapes prices was not observed. Moreover the policy affect
Author InfoKhachatryan, N. Schuele, H. Khachatryan, Armen Abstract Since 1994 Argentinean government implemented the diversification policy to reduce wine supply in the domestic market and stabilize prices through reducing the share of grapes allocated for wine production in favour of must production. The policy has set a minimum percentage of grapes for concentrated grape must (CGM) production for every wine maker. The research aims to investigate the effects of the policy on the sector applying spatial equilibrium analysis, based on the model of Interregional Trade of Wine products in Argentina. The qualitative analysis of the sector under the current policy revealed, that the policy had a) no impact on the grape segment, b) a slight positive impact on grape must production due to 14% increased grapes reallocated from wine sector, and c) an expected but modest 20% decrease of wine production. The anticipated increase of wine and grapes prices was not observed. Moreover the policy aff
