The macroeconomic overview of the alcohol industry: a perspective from the emerging market of Asia

Purpose: This study aims to analyze the relationship between the alcohol brewing industry and the macroeconomic variables of the emerging market of Asia. Design/methodology/approach: The study uses secondary data for the period of 32 years and applies the autoregressive distributed lag-error correction method (ARDL-ECM) approach to understand short- and long-run dynamics in the alcohol industry by considering macroeconomic variables. Findings: The findings of the study confirm the existence of a long-run relationship between the alcohol brewing industry and the macroeconomic variables considered for this study. Research limitations/implications: The authors present a few limitations of this study. First, this study uses secondary data originating from one of the emerging markets of Asia. Second, the study is solely conducted from an economic perspective rather than from a social or health perspective. Finally, the study considers the data originating from the organized sector of the alcohol industry of India. Practical implications: The study will be helpful to the researchers in guiding the future course of research in the area of the alcohol industry. This study can be helpful to the policymakers in framing the National Alcohol and taxation Policy. This study also helps both the producers and exporters to strategize sustainable production and trade of alcoholic beverages. Originality/value: To the best of the authors’ knowledge, this study is the first of its kind to analyze the alcohol industry from the macroeconomic perspective through the ARDL-ECM approach.