Scandinavian Working Papers in Economics

HUI Working Papers,
HUI Research

No 2: Entry into Swedish Retail and Wholesale Trade Markets

Sven-Olov Daunfeldt (), Niklas Rudholm () and Fredrik Bergström
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Sven-Olov Daunfeldt: The Swedish Retail Institute (HUI), Postal: Regeringsgatan 60, SE-103 29 Stockholm, Sweden
Niklas Rudholm: The Swedish Retail Institute (HUI), Postal: Regeringsgatan 60, SE-103 29 Stockholm, Sweden
Fredrik Bergström: The Swedish Retail Institute (HUI), Postal: Regeringsgatan 60, SE-103 29 Stockholm, Sweden

Abstract: This paper examines, using a zero-inflated negative binomial regression model, what determined entry into the Swedish retail and wholesale trade markets between 1990 and 1996. According to the results, high returns on equity and low sunk costs seemed to attract more entry into retail trade industries, while recent entry and higher total industry sales were associated with more entry into both retail and wholesale trade local markets.

Keywords: whole sale; retail trade; entry; number of firms; panel data

JEL-codes: L13; L81

19 pages, January 5, 2005

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