Does new shopping centre development benefit or harm the local suburban market? Heterogeneous effects from shopping centre type and distance

Oana Mihaescu (), Martin Korpi () and Özge Öner ()
Additional contact information
Oana Mihaescu: The Institute of Retail Economics
Martin Korpi: Ratio and Södertörns Högskola
Özge Öner: University of Cambridge

The Annals of Regional Science, 2024, vol. 73, issue 3, No 20, 1339-1363

Abstract: Abstract We study the effects of new shopping centre developments on the performance of 7041 retail and hospitality firms located in the suburbs of Stockholm, Gothenburg, and Malmö. In particular, we analyse to what extent these effects vary with respect to the distance to, and characteristics of, these newly established centres. Exploiting data covering a 17-year period (2000–2016) in a fixed-effects panel regression framework, we find that the establishment of new neighbourhood centres is associated with an average increase in revenues and employment for retail incumbents by + 1.80% and + 1.20%, respectively, for each 100-m reduction in distance to the respective centre. Similarly, the introduction of large regional centres is associated with an increase in the revenues and employment of hospitality firms by + 1.40% and + 1.20%, respectively, for every 100-m decrease in proximity to the new shopping centre. Retail firms are affected by regional centres only in terms of their revenues, which increase by + 0.70% for each 100-m decrease in distance. Our results indicate a diminishing impact of both regional and neighbourhood centres with increased distance, suggesting a broader geographical reach for the effects of regional centres.

JEL-codes: D22 L25 P25 R11 R12 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s00168-024-01296-9 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:anresc:v:73:y:2024:i:3:d:10.1007_s00168-024-01296-9

Ordering information: This journal article can be ordered from
http://link.springer.com/journal/168

DOI: 10.1007/s00168-024-01296-9

Access Statistics for this article

The Annals of Regional Science is currently edited by Martin Andersson, E. Kim and Janet E. Kohlhase

More articles in The Annals of Regional Science from Springer, Western Regional Science Association Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().