Wine Consumption and Culture: A Cross‐Country Analysis

Abstract The main objective of this article is to investigate how national culture and sociopolitical environment influence the level of wine consumption in a representative panel of countries. Culture is defined as the consumption practices related to economic, social, and cultural aspects and institutional factors. A single equation analysis is based on a cross section of countries representing 90% of wine consumption in the world for the period 2003–2017. In order to draw a final model explaining wine consumption through the cultural peculiarities of a country and to avoid multicollinearity among independent variables, a principal component analysis is performed and a random‐effects GLS regression model is applied to determine the set of cultural variables which are the most significant in affecting wine consumption.