S-WoPEc
 
Scandinavian Working Papers in Economics
HomeAboutSeriesSubject/JEL codesAdvanced Search
Research Institute of Industrial Economics (IFN) Working Paper Series

No 1047:
Retail Productivity: Investigating the Influence of Market Size and Regional Hierarchy

Özge Öner ()

Abstract: This paper investigates the determinants of the productivity of independent retail stores in Sweden by focusing on the impact of market size and regional hierarchy while controlling for several store and employee characteristics over time. The analysis utilizes Swedish store-level data for the years 2002–2008. To capture the urban-periphery interaction in retail markets, the analysis (i) uses an accessible market potential measure, which captures the impact of the potential demand both in close proximity in the region, and from outside the region separately, and (ii) investigates the stores that are located in central and non-central markets respectively. The results show an approximately 10 percent higher productivity premium associated with the market size in close proximity for centrally located independent stores, whereas regional market size is found to play an equally important role for both stores located in central markets and stores located in peripheral markets. The findings also show that employee characteristics do not contribute to the productivity of stores in central markets but that small but significant productivity returns are captured for stores located in peripheral markets. The differences in the impact arising from the market potential measures highlight the importance of taking the spatial continuum and regional hierarchy into account in an examination of the market size–productivity relationship for retailers.

Keywords: Retail; Productivity; Urban rural hierarchy; Market accessibility; (follow links to similar papers)

JEL-Codes: D24; L81; R11; R12; (follow links to similar papers)

30 pages, November 6, 2014

Before downloading any of the electronic versions below you should read our statement on copyright.
Download GhostScript for viewing Postscript files and the Acrobat Reader for viewing and printing pdf files.

Full text versions of the paper:

wp1047.pdf    PDF-file
Download Statistics

Questions (including download problems) about the papers in this series should be directed to Elisabeth Gustafsson ()
Report other problems with accessing this service to Sune Karlsson () or Helena Lundin ().

Programing by
Design by Joachim Ekebom

Handle: RePEc:hhs:iuiwop:1047 This page was generated on 2016-10-11 23:29:41