Entry deterrence through regional regulation and strict licensing policy: an analysis of the large retail establishments in Spain

Luis Orea

Oxford Economic Papers, 2012, vol. 64, issue 3, 539-562

Abstract: We take advantage of the large differences in regulation and electoral results among Spanish municipalities and regions to measure the effect of both regional retail regulation and strict licensing policy on the market structure of large retail establishments in Spain. This allows us to shed light on the likely effects of adapting the Spanish regulation to the European Union's Services Directive. Although our results suggest the existence of quite different approval policies in Spain, we find that the imminent adaptation of the Spanish regulation will likely have a modest impact on most local markets, except on those markets belonging to the Basque Country, Catalonia, and the Balearic Islands. Copyright 2012 Oxford University Press 2011 All rights reserved, Oxford University Press.

Date: 2012
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