Factors Influencing Competitiveness in the Global Beer Trade

Abstract

Beer is a widely produced, consumed, and traded alcoholic drink all around the world. This paper investigates the factors influencing competitiveness in the global beer trade on the macroeconomic level. To reach this aim, descriptive analysis and panel regression together with stability tests were used on the global beer market from 1998 to 2017. Results showed high concentration both in global production and trade, while except for the most competitive beer-exporting countries, the level of comparative advantages has significantly changed in these three decades. Based on the panel regression models, total beer production and per capita consumption, EU membership, and the number of beers with geographical indications have a positive impact on comparative advantages. In contrast, barley production, level of foreign direct investments, size of the population, GDP/capita, and high quality level of the beer export have a negative effect.