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Developments in retail trade regulation in Spain and their macroeconomic implications

Author

Listed:
  • M.ª de los Llanos Matea

    (Banco de España)

  • Juan S. Mora

    (Banco de España)

Abstract

The literature points out that retail trade regulations may have a significant impact on prices, employment and productivity. In the case of Spain, the retail trade sector is subject to a rich set of regional regulations. This paper provides a database and a set of indicators on the main restrictions to retail trade in place in Spain’s Autonomous Regions (Comunidades Autónomas) between 1997 and 2007. Those restrictions bear on the following regulatory aspects: shopping hours, blue laws, seasonal discounts, definitions of "big" stores, licensing of discount stores, moratoria in retail trade licence issuing and taxes on big stores. The paper presents then an aggregate indicator constructed on the basis of these restrictions using factor analysis. Finally, this research estimates the effect of the commercial restrictiveness (using the aggregate indicator) among the regions on the commercial density, the number of employees of the sector and the rate of inflation. For that, panel data techniques are applied to the analysis. On the one hand, the results of this research point to an increase in the level of regulation throughout the period. On the other hand the estimates show that an increase in the level of restrictiveness increases commercial density and inflation among the regions but diminishes the number of persons employed in the sector. In either case, the results of this research must be taken with care due to the limitations of the regulation indicator studied and the limited availability of data for the period under study.

Suggested Citation

  • M.ª de los Llanos Matea & Juan S. Mora, 2009. "Developments in retail trade regulation in Spain and their macroeconomic implications," Working Papers 0908, Banco de España.
    • Handle: RePEc:bde:wpaper:0908
    as

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    File URL: http://www.bde.es/f/webbde/Secciones/Publicaciones/PublicacionesSeriadas/DocumentosTrabajo/dt0908e.pdf
    File Function: First version, May 2009
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    References listed on IDEAS

    as
    1. Fabiano Schivardi & Eliana Viviano, 2011. "Entry Barriers in Retail Trade," Economic Journal, Royal Economic Society, vol. 121(551), pages 145-170, March.
    2. 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.
    3. Marianne Bertrand & Francis Kramarz, 2002. "Does Entry Regulation Hinder Job Creation? Evidence from the French Retail Industry," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(4), pages 1369-1413.
    4. Viviano, Eliana, 2008. "Entry regulations and labour market outcomes: Evidence from the Italian retail trade sector," Labour Economics, Elsevier, vol. 15(6), pages 1200-1222, December.
    5. Paul Conway & Giuseppe Nicoletti, 2006. "Product Market Regulation in the Non-Manufacturing Sectors of OECD Countries: Measurement and Highlights," OECD Economics Department Working Papers 530, OECD Publishing.
    6. Giuseppe Nicoletti & Stefano Scarpetta & Olivier Boylaud, 2000. "Summary Indicators of Product Market Regulation with an Extension to Employment Protection Legislation," OECD Economics Department Working Papers 226, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Maria Sanchez Vidal, 2016. "Small shops for sale! The effects of big-box openings on grocery stores," Working Papers 2016/12, Institut d'Economia de Barcelona (IEB).
    2. Sanchez-Vidal, Maria, 2019. "Retail shocks and city structure," LSE Research Online Documents on Economics 103394, London School of Economics and Political Science, LSE Library.
    3. Maria Sánchez-Vidal, 2019. "Retail shocks and city structure," CEP Discussion Papers dp1636, Centre for Economic Performance, LSE.

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    More about this item

    Keywords

    Regulation in services markets; barriers to entry; retailing; blue laws;
    All these keywords.

    JEL classification:

    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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