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The Effect of Relaxation of Entry Restrictions for Large-Scale Retailers on SME Performance: Evidence from Japanese Retail Census

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  • MATSUURA Toshiyuki
  • SUGANO Saki

Abstract

In this paper, we quantified the effect of liberalization of entry restriction for large-scale retailers (LSR) on small and medium enterprises (SME) for the Japanese retailing sector in the late 1990s. We constructed a new regional database and compared SME performance at the regional level between regions with/without LSR entry. To tackle the endogeneity between LSR entry and SME performance, we used the propensity score matching method. Comparison with matched samples suggests that LSR entry does not have any negative effect on SME performance. On the contrary, we found a positive effect on SME sales and employment especially in suburban districts.

Suggested Citation

  • MATSUURA Toshiyuki & SUGANO Saki, 2009. "The Effect of Relaxation of Entry Restrictions for Large-Scale Retailers on SME Performance: Evidence from Japanese Retail Census," Discussion papers 09054, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:09054
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    Cited by:

    1. Mayumi Ojima & Junnosuke Shino & Kozo Ueda, 2018. "Retailer Market Concentration, Buyer-Size Discounts and Inflation Dynamics," The Japanese Economic Review, Springer, vol. 69(1), pages 101-127, March.
    2. Kozo Ueda & Kota Watanabe & Tsutomu Watanabe, 2018. "Product Turnover and the Cost of Living Index: Quality vs. Fashion Effects," Globalization Institute Working Papers 337, Federal Reserve Bank of Dallas.
    3. Kozo Ueda & Kota Watanabe & Tsutomu Watanabe, 2016. "Product Turnover and Deflation: Evidence from Japan," CARF F-Series CARF-F-400, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo.
    4. Zhang, Chuanchuan, 2011. "大型外资零售商的进入对中国地区劳动力市场的影响 [Impact of Entry of Large Foreign Retailers on Local Labor Markets in China]," MPRA Paper 43912, University Library of Munich, Germany, revised Apr 2012.
    5. SHIMOTSU Katsumi, 2014. "The Effect of Large-Scale Retailers on Price Level: Evidence from Japanese data for 1977-1992," Discussion papers 14013, Research Institute of Economy, Trade and Industry (RIETI).

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