Country of origin advertising and US demand of imported wine: an empirical analysis

Authors: Abdoul G. Sam & Stanley R. Thompson. Published in Applied Economics Letters, April 2012, Volume 19, Issue 18.

Abstract: We investigate the impact of media advertising on the US consumption of imported wine. Panel data from six countries over 15 years (1994–2008) are used to estimate an aggregate demand function for US wine imports. Our empirical analysis reveals evidence of important effects of advertising of domestic and imported wines on imported quantities; the advertising of imported wines significantly increases the quantity of imports for most countries while the advertising of domestic wines has a mixed effect on imported wine volumes. Other determinants such as price and real income are also found significant.

Publication type: 
Journal article
Date published: 
Tuesday, April 10, 2012