Abstract:
Regarding the high wine production potential; the main goal of the study is to discover whether there is a long run relationship between wine production, wine net export and demand and to display the possible contribution of latter variables on wine production in Turkey. Following the wine market overlook; related contribution is analyzed by using annual time series data for the years 1961-2005, the Johansen cointegration test and ordinary least squares method. The empirical findings have shown that, as the wine net export or the wine demand increases, wine production also increases in Turkey. Cointegration test has proved that there is a long run relationship between wine production and the other variables.