New evidence on wine in French international trade (1848–1913): Import discrimination as export quality promotion
Résumé
Using an original dataset and theoretical framework, this paper offers a reinterpretation of the French wine international trade after external shocks during wine globalization based on trade policy. To maintain external position, particularly after phylloxera, French authorities promoted the development of Algerian vineyards by complex discrimination in tariffs. We highlight a negative relationship between discrimination in tariff policy and market share for wine trade partners to the detriment of Spain, Italy and Portugal and in favor of Algeria. By combining a counterfactual analysis and two theoretical models, we consider Algeria as a new competitor in an imperfect competition. Moreover, using data of wine quality at a desegregated level, we reveal that the control of imports by France allowed the diversification of the range of exports and maximisation of profits.
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