Vol. 12 No. 2 (2023)
Original Research Article

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

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  • Samuel Faria,
  • João Rebelo,
  • Alexandre Guedes,
  • Sofia Gouveia
Samuel Faria
Department of Economics, Sociology and Management (DESG), University of Trás-os-Montes and Alto Douro (UTAD), Quinta de Prados, 5001-801 Vila Real
João Rebelo
Department of Economics, Sociology and Management (DESG), Centre for Transdisciplinary Development Studies (CETRAD), University of Trás-os-Montes and Alto Douro (UTAD), Quinta de Prados, 5001-801 Vila Real
Alexandre Guedes
Department of Economics, Sociology and Management (DESG), Centre for Transdisciplinary Development Studies (CETRAD), University of Trás-os-Montes and Alto Douro (UTAD), Quinta de Prados, 5001-801 Vila Real
Sofia Gouveia
Department of Economics, Sociology and Management (DESG), Centre for Transdisciplinary Development Studies (CETRAD), University of Trás-os-Montes and Alto Douro (UTAD), Quinta de Prados, 5001-801 Vila Real
DOI: https://doi.org/10.36253/wep-13917

Published 2023-12-31

Keywords

  • 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, 12(2), 43–54. https://doi.org/10.36253/wep-13917

Copyright (c) 2023 Samuel Faria, João Rebelo, Alexandre Guedes, Sofia Gouveia

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

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 objective, this article applies a fractional response model. The results allow us to confirm that the impact of the pandemic crisis depends on firm structure and behaviour reflected by variables such as firm size, age, export intensity, market channel as well as on the geographic location of firms. This suggests the need for the development of innovative regional clusters and calls for managers and policymakers to consider the heterogeneity of wineries and dissimilar effects of contingency measures at the municipal level during an exogenous shock.

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