How efficient is winemaking in Eastern EuropeNew Medit, vol 16, n.2, (June 2017), pp. 64-72
Jel classification: L66, C14, O47
This paper is devoted to estimating the efficiency of winemaking in two Eastern European countries – Ukraine and Bosnia&Herzegovina. Empirical research is based on a sample including 33 wineries. Using the models of Data Envelopment Analysis, the authors found that having the same average efficiency and number of leaders, medium and large wineries are developing more efficiently than small wineries in Ukraine, whereas in Bosnia&Herzegovina small wine businesses are more efficient. The high potential growth of efficiency is discovered and the ways for its realization suggested. Cross-country efficiency analysis enabled authors to find inter-country leaders in the wine industry. They grouped inefficient wineries, calculated the potential to reduce inputs and found the main directions to improve efficiency for each group.
efficiency, winemaking, winery, Ukraine, Bosnia&Herzegovina