Geographical indications and economic performance of small, medium, and large enterprises of the food industry in the EU

This study explores the effects of geographical indications (GIs) on the economic performance of small, medium, and large enterprises in the EU food industry. Protecting the unique qualities, reputation of regional products, supporting local traditions, GIs contribute to creating added value. Based on data from eAmbrosia and Banque de France covering 12 EU member states from 2003-2023, regression analysis found how GIs influence selected economic ratios: return on equity (ROE), gross value added per net turnover (GVA) and return on assets (ROA). Findings show that GIs positively impact ROE and GVA for small and medium-sized businesses, boosting profitability and efficiency; GI positively influenced the GVA for enterprises of all sizes; GIs negatively affect ROA for medium-sized businesses. Results highlight the economic benefits of GIs, also pointing to the need for policies to provide financial and institutional support to small and medium businesses, promote sustainable growth and preserve cultural heritage.