Marketing Channels and Retail Store Density in East Asia *

Kenji Matsui, Shuanghong Lu, Tatsuhiko Nariu and Tadashi Yukimoto

Asian Economic Journal, 2005, vol. 19, issue 4, pages 407-422

Abstract: By measuring retail store density with regard to population, several studies have indicated that marketing channels in Asia are different from those in the USA and European countries. The present paper investigates to what extent a model similar to Flath and Nariu (1996) can empirically predict retail densities in Japan and China. The results suggest that the secular decline in the number of retail stores in Japan primarily results from the proliferation of car ownership and the expansion in the average size of a dwelling. We also demonstrate that the model accounts for the large variations in China's retail density. Copyright 2005 East Asian Economic Association.

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