Productivity growth in the winery sector: evidence from Italy and Spain

Abstract

Purpose – The purpose of this paper is to estimate total productivity change in the winery sector, decomposing it into efficiency change and technical change. Design/methodology/approach – The methodology is based on the estimation of the Malmquist productivity index for a sample of Spanish and Italian wineries between 2005 and 2013. Findings – The results show very low efficiency levels for the wineries under study. Further, Spanish and Italian wineries show a decrease in their average annual productivity for the period of time analysed. Practical implications – The analysis of the efficiency and the productivity of the wineries is crucial to improve their competitiveness and guarantee their survival. Originality/value – For the first time, a comparative analysis is carried out with data from two major wine-producing countries.