Johan HÃ¥kansson, Yujiao Li, Oana Mihaescu and Niklas Rudholm ()
Additional contact information
Johan HÃ¥kansson: Dalarna University, Postal: SE-791 88 Falun, Sweden
Yujiao Li: Dalarna University, Postal: SE-791 88 Falun, Sweden
Oana Mihaescu: HUI Research, Postal: SE-103 29 Stockholm, Sweden
Niklas Rudholm: HUI Research, Postal: SE-103 29 Stockholm, Sweden and Dalarna University, SE- 791 88 Falun, Sweden
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 Gothenburg.
Keywords: Big-box entry; Production functions; Retail productivity; Retail entry subsidies
JEL-codes: D22; L11; L25; L26; P25
26 pages, May 24, 2016
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