HUI Working Papers, HUI Research
Johan Håkansson, Yujiao Li, Oana Mihaescu and Niklas Rudholm
Big-box retail entry in urban and rural areas: Are there productivity spillovers to incumbent retailers?
Abstract: This paper empirically measures the potential spillover
effects of big-box retail entry on the productivity of incumbent retailers
in the entry regions, and investigates whether the effects differ depending
on the size of the new establishment relative to the size of the local
market. The results indicate that big-box entry increases the productivity
of incumbent firms in two of three rural entry regions where the IKEA is
large relative to the local retail market, while no productivity spillover
effects could be found in the case of the urban IKEA entry in
Keywords: Big-box entry; Production functions; Retail productivity; Retail entry subsidies; (follow links to similar papers)
JEL-Codes: D22; L11; L25; L26; P25; (follow links to similar papers)
26 pages, May 24, 2016
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