MACROECONOMIC DETERMINANTS OF WINE PRODUCTION IN THE EUROPEAN UNION

This paper focuses on the determinants of wine production in European industry. In last two decades, industry has undergone many changes due to entry new countries into world market. Although increasing competitiveness became priority Common Agricultural Policy, and consumption EU have decreased therefore aim this research is analyse identify macroeconomic production, i.e. what factors besides price influence selected how they can be controlled. Empirical was conducted using data for member states traditionally engaged production. Panel consumption, average price, imports, exports support sector were collected from secondary sources 15 wine-producing period 2009-2018. We estimated econometric model pooled OLS, as diagnostic tests indicated that estimator best fit our data. Our results suggest domestic demand (EU) subsidies are main drivers To keep up with New World producers, even more emphasis should placed promoting drinking culture.