Analyzing the Effects of Geographical Indications in Practice: A Survey of the Research in Experimental Economics

Abstract

We sought to compile empirical research on the monetary effects of Geographical Indications (GIs) in our review. We looked at the market size, the price premium, and the effects on rural development using a comprehensive literature review technique. Research from both the academic and gray literatures has shown contradictory conclusions. Despite an uptick in GI-related empirical research, not even the most significant GI system—the European Union (EU)—has the economic statistics needed to back GI-related policy. The economic effect of GIs is too complex to make broad generalizations about. While the size of the GI market in certain countries is rather large, and some GI goods play a pivotal role in both local and export markets, this is by no means universal. Again, some GI items from certain places may fetch hefty premiums, but producers could not see a rise in revenue as a consequence of greater production costs and uneven distribution of value. The most contradictory empirical findings were discovered in regards to the positive and negative impacts of GIs on regional wealth and rural development, respectively.