An Analysis of the Economic Impacts of Big-Box Stores on a Community’s Retail Sector: Evidence from Maine

Emily A. Freedman, James Mcconnon, Gary L. Hunt and Todd Gabe

Journal of Regional Analysis and Policy, 2016, vol. 46, issue 2

Abstract: This study examines the effects of big - box stores on the change in the number of retail stores operating in a market area. Our econometric results suggest that the presence and growth of big - box retailers has a positive net effect on retail establishment growth in Maine. We found no evidence that big - box stores have any impact on the net change in hardware stores, but did find a positive impact on the net change in the number of restaurants. An additional noteworthy finding of this study is that there appears to be a “saturation point” at which the effect of an additional big - box store becomes negative, a likely result of too much competition in a community’s overall retail sector.

Keywords: Community/Rural/Urban Development; Demand and Price Analysis (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:ags:jrapmc:262577

DOI: 10.22004/ag.econ.262577

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