Do Territories with Geographical Indications Trade Better?

Do Geographical Indications (GIs) have an impact on local export dynamics? This paper uses a panel geo-referenced dataset and a quasi-experimental approach based on Propensity Score Matching and Difference in Differences methods. Specifically, the study focuses on the impact of the European GI scheme on the wine sector export dynamics of Italian municipalities. Findings suggest that GIs positively impact wine export performance. Additionally, the positive impact of GIs spills over to the overall agri-food sector: taking similar non-GI municipalities as a benchmark, GI municipalities saw a higher increase in the value, volume, and unit value of export both in the wine and the overall agri-food sector. The positive impact involves both extra- and intra-EU trade flows and it is confirmed for rural areas as well for municipalities belonging to regions with weak institutions.