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

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  • Freedman, Emily A.
  • McConnon Jr., James C.
  • Hunt, Gary L.
  • Gabe, Todd M.

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.

Suggested Citation

  • Freedman, Emily A. & McConnon Jr., James C. & Hunt, Gary L. & Gabe, Todd M., 2016. "An Analysis of the Economic Impacts of Big-Box Stores on a Community’s Retail Sector: Evidence from Maine," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 46(2), December.
    • Handle: RePEc:ags:jrapmc:262577
    DOI: 10.22004/ag.econ.262577
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