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The effect of legal barriers to entry in the Spanish retail market: a local market approach

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  • Luis Orea

    ()
    (Universidad de Oviedo)

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    Abstract

    Recent studies have shown that barriers to entry for large retail establishments in Spain have been increased in the last decade. Using information on local markets, we test whether the entry of large retail establishments was effectively limited by regional regulation and whether it effectively protected in-town shops from competition. We find that if entry barriers were reduced to their average level in 1997, the number of large retail establishments would increase by 11.7%. We also find that over-regulation in 1997 has improved in-town shops’ market position, with their number increasing by 13.8%.

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    File URL: http://www.ief.es/documentos/recursos/publicaciones/revistas/hac_pub/193_Art_2.pdf
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    Bibliographic Info

    Article provided by IEF in its journal Hacienda Pública Española/Revista de Economía Pública.

    Volume (Year): 193 (2010)
    Issue (Month): 2 (June)
    Pages: 49-74

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    Handle: RePEc:hpe:journl:y:2010:v:193:i:2:p:49-74

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    Related research

    Keywords: Barriers to entry; retail distribution; regulation;

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    1. Jeffrey Campbell, 2000. "Market Size Matters," Econometric Society World Congress 2000 Contributed Papers 1225, Econometric Society.
    2. Giuseppe Nicoletti & Stefano Scarpetta, 2003. "Regulation, Productivity and Growth: OECD Evidence," OECD Economics Department Working Papers 347, OECD Publishing.
    3. Cotterill, Ronald W, 1986. "Market Power in the Retail Food Industry: Evidence from Vermont," The Review of Economics and Statistics, MIT Press, vol. 68(3), pages 379-86, August.
    4. Griffith, Rachel & Harmgart, Heike, 2008. "Supermarkets and Planning Regulation," CEPR Discussion Papers 6713, C.E.P.R. Discussion Papers.
    5. S. Baranzoni & P. Bianchi & L. Lambertini, 2000. "Market Structure," Working Papers 368, Dipartimento Scienze Economiche, Universita' di Bologna.
    6. Michele Cincera, 2004. "Impact of market entry and exit on EU productivity and growth performance," ULB Institutional Repository 2013/921, ULB -- Universite Libre de Bruxelles.
    7. Chen, Natalie, 2002. "The Behaviour of Relative Prices in the European Union: A Sectoral Analysis," CEPR Discussion Papers 3320, C.E.P.R. Discussion Papers.
    8. Javier Miranda & Shawn Klimek & Ron Jarmin, 2004. "Firm Entry and Exit in the U.S. Retail Sector, 1977-1997," Working Papers 04-17, Center for Economic Studies, U.S. Census Bureau.
    9. Howard Smith, 2004. "Supermarket Choice and Supermarket Competition in Market�Equilibrium," Review of Economic Studies, Wiley Blackwell, vol. 71(1), pages 235-263, 01.
    10. Asplund, Marcus & Friberg, Richard, 2002. " Food Prices and Market Structure in Sweden," Scandinavian Journal of Economics, Wiley Blackwell, vol. 104(4), pages 547-66, December.
    11. Barros, Pedro Pita & Brito, Duarte & de Lucena, Diogo, 2006. "Mergers in the food retailing sector: An empirical investigation," European Economic Review, Elsevier, vol. 50(2), pages 447-468, February.
    12. Alexander W. Hoffmaister, 2010. "Barriers to retail competition and prices: evidence from Spain," Oxford Economic Papers, Oxford University Press, vol. 62(2), pages 395-416, April.
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