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Supermarket Entry and its effect on small stores in Montevideo, 1998 to 2007

Fernando Borraz (), Juan Dubra (), Daniel Ferres and Leandro Zipitria ()

No 2009005, Documentos de trabajo from Banco Central del Uruguay

Abstract: We analyze the effect of supermarket entry on small grocery retailers’ exit in the retailing sector in Montevideo between 1998 and 2007. We show that the entry of one supermarket in a small store’s neighborhood increases its chance exiting the market in that year by 1.2% on average. The result is robust to several model specifications, and varying definitions of what constitutes a supermarket.

Keywords: Supermarket; small grocery; entry; Uruguay (search for similar items in EconPapers)
JEL-codes: L13 L21 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2009
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