An Analysis of Some Selected Economic and Social Factors Affecting Wine Sector: A Fuzzy Clustering Analysis1


TOSUN A. N., YILMAZ A. E.

Hacettepe Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, vol.41, no.Tarım Özel Sayısı, pp.111-123, 2023 (Peer-Reviewed Journal) identifier

Abstract

The purpose of this study is to analyze some selected economic and social factors affecting the wine industry and to determine the cluster of countries in Europe including Türkiye that produce wine. The study sample comprised 28 countries (the 27 EU members plus Türkiye). Five country-level variables related to the wine industry were analyzed: Excise duty, value added tax, support provided by the European Union to the wine industry, geographical indications, and wine export data. A fuzzy c-means clustering algorithm was used to analyze the data. According to the findings, Türkiye is in the same cluster with 24 other European countries that are similar regarding selected social and economic factors. Thus, these countries are likely to be suitable competitors in terms of wine production. European largest producers Italy, France and Spain are in a different cluster. Economic policies can help Türkiye become an international leader in wine production. For example, the Turkish government can decrease or stop collecting excise duties from the wine industry, support the acquisition of geographical indications for its local wines. provide cash support to the industry, similar to policies throughout the European Union countries.