HUI Working Papers, HUI Research
What Happens When IKEA Comes to Town?
(), Oana Mihaescu, Helena Nilsson and Niklas Rudholm
Abstract: Using data from 2000-2011, the effects of a new IKEA store
on retail revenues, employment, and inflow of purchasing power in the entry
municipalities, as well as in neighboring municipalities were investigated.
A propensity score matching method was used to find non IKEA entry
municipalities that were as similar as possible to the entry municipalities
based on the situation before entry. Our results indicate that IKEA-entry
increased entry-municipality durable-goods revenues by about 20% and
employment by about 17%. Only small and, in most cases, statistically
insignificant effects were found in neighboring municipalities.
Keywords: big-box retailing; retail revenues; job creation; employment; propensity-score matching; panel data; (follow links to similar papers)
JEL-Codes: D22; L11; L25; L26; (follow links to similar papers)
27 pages, March 5, 2014
- This paper is published as:
Daunfeldt, Sven-Olov, Oana Mihaescu, Helena Nilsson and Niklas Rudholm, (2015), 'What Happens When IKEA Comes to Town?', Regional Studies, November
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