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Abstract

The wine sector has experienced a deep transformation of its technological processes and its commercial strategy that emphasizes the wine sale in the international markets. It is for this reason that it is important to evaluate the competitiveness of the industry in relation to the behavior of its average costs and the export levels, since they constitute the structural base of the commercial strategy. The objective of this investigation is to characterize the type of yields of scale that the exporting wine industry presents. For it, the cost to exports elasticity was estimated through an econometric model, elaborated from the translogarithmic cost function, and under the assumption of maximization of the benefit for the firms of the industry, for period 1981 - 2005. A cost-exports elasticity of 5,5 was determined, together with an exportfactors (capital and labour) elasticity of 0,18, with which it is concluded that the sector presents diseconomies of scale.

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