2023: Just Accepted
Original Research Article

Fractional responses with spatial dependence of Portuguese wineries' domestic market sales to an exogenous shock (Covid-19)

Samuel Faria
University of Trás-os-Montes and Alto Douro
João Rebelo
University of Trás-os-Montes and Alto Douro, CETRAD
Alexandre Guedes
University of Trás-os-Montes and Alto Douro, CETRAD
Sofia Gouveia
University of Trás-os-Montes and Alto Douro, CETRAD

Published 2023-09-27


  • Wine; Fractional response model; Spatial dependence; Exogenous shock; Firm performance

How to Cite

Faria, S., Rebelo, J., Guedes, A., & Gouveia, S. (2023). Fractional responses with spatial dependence of Portuguese wineries’ domestic market sales to an exogenous shock (Covid-19). Wine Economics and Policy. https://doi.org/10.36253/wep-13917


This paper uses firm-level data to investigate the resilience of the Portuguese wine sector’s domestic market in the aftermath of the exogenous shock arising from Covid-19. To address this research goal, based on a resource-based view of the firm framework, this article applies a fractional response model including spatial dependence of wineries. Comparing 2020 to 2019, the results allow us to confirm that the impact of the pandemic crisis depends on firm structure and behavior reflected by variables such as firm size, age, export intensity, market channel, as well as geographic location. The results show the need for the development of innovative regional clusters, that go beyond joint promotion, involving the development of cooperative practices between neighboring firms. Therefore, managers and policy makers should consider heterogeneity of wineries as well as the promotion of robust local clusters.


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