Big-box retail entry in urban and rural areas: Are there productivity spillovers to incumbent retailers?

Johan Håkansson, Yujiao Li, Oana Mihaescu () and Niklas Rudholm ()
Additional contact information
Johan Håkansson: Dalarna University, Postal: SE-791 88 Falun, Sweden
Yujiao Li: Dalarna University, Postal: SE-791 88 Falun, Sweden
Niklas Rudholm: HUI Research, Postal: SE-103 29 Stockholm, Sweden and Dalarna University, SE- 791 88 Falun, Sweden

No 118, HUI Working Papers from HUI Research

Abstract: This paper empirically measures the potential spillover effects of big-box retail entry on the productivity of incumbent retailers in the entry regions, and investigates whether the effects differ depending on the size of the new establishment relative to the size of the local market. The results indicate that big-box entry increases the productivity of incumbent firms in two of three rural entry regions where the IKEA is large relative to the local retail market, while no productivity spillover effects could be found in the case of the urban IKEA entry in Gothenburg.

Keywords: Big-box entry; Production functions; Retail productivity; Retail entry subsidies (search for similar items in EconPapers)
JEL-codes: D22 L11 L25 L26 P25 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2016-05-24
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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