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International trade, non-tariff measures and climate change: insights from Port wine exports

Anthony Macedo (Universidade de Trás-os-Montes e Alto Douro, Vila Real, Portugal)
Sofia Gouveia (Centre for Transdisciplinary Development Studies (CETRAD), Universidade de Trás-os-Montes e Alto Douro, Vila Real, Portugal)
João Rebelo (Centre for Transdisciplinary Development Studies (CETRAD), Universidade de Trás-os-Montes e Alto Douro, Vila Real, Portugal)
João Santos (Centre for the Research and Technology of Agro-Environmental and Biological Sciences (CITAB), Universidade de Trás-os-Montes e Alto Douro, Vila Real, Portugal)
Helder Fraga (Centre for the Research and Technology of Agro-Environmental and Biological Sciences (CITAB), Universidade de Trás-os-Montes e Alto Douro, Vila Real, Portugal)

Journal of Economic Studies

ISSN: 0144-3585

Article publication date: 22 October 2020

Issue publication date: 12 August 2021

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Abstract

Purpose

The purpose of this study is to investigate international trade determinants, paying special attention to variables related to climate change and non-tariff measures (NTMs), as they shape more and more world trade flows, with particular incidence on globalised goods, such as wine.

Design/methodology/approach

Based on panel data of Port wine exports to 60 countries, between 2006 and 2018, a gravity model has been estimated through Poisson pseudo-maximum likelihood. Explanatory variables include NTMs, mean temperature, temperature anomaly, gross domestic product (GDP), exchange rate, ad valorem equivalent tariffs and home bias.

Findings

The findings show that exports are inversely related to both mean temperature and temperature anomaly in importing countries. Regarding NTMs, it is found that only part of them are trade deterrent. Additionally, purchasing power in importing countries is one of the main determinants of Port wine exports.

Research limitations/implications

The results show that, besides traditional economic variables, policymakers and wineries should include in their exports' decisions the impact of variables related to climate change and NTMs.

Originality/value

The novelty of this paper is to incorporate the impact of climatic variability of importing countries as a determinant of international trade of wine. Most former studies inspired of the gravity model consider explanatory variables such as GDP and exchange rate, and more recent ones started to consider NTMs too, however, this study may be the first paper to include the impact of climate change (quantified by mean temperature and temperature anomaly in importing countries) on exports.

Keywords

Acknowledgements

Funding: This work was supported by the project VINCI – Wine, Innovation and International Competitiveness, under the operation number SOE3/P2/F0917, FEDER – Interreg SUDOE, and national funds, through the FCT – Portuguese Foundation for Science and Technology under the projects UIDB/SOC/04011/2020 and UIDB/04033/2020.

Citation

Macedo, A., Gouveia, S., Rebelo, J., Santos, J. and Fraga, H. (2021), "International trade, non-tariff measures and climate change: insights from Port wine exports", Journal of Economic Studies, Vol. 48 No. 6, pp. 1228-1243. https://doi.org/10.1108/JES-04-2020-0161

Publisher

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Emerald Publishing Limited

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