International Trade and Retailing: Diversity versus Accessibility and the Creation of \"Retail Deserts\"

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International Trade and Retailing: Diversity versus Accessibility and the Creation of \"Retail Deserts\"

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Carsten Eckel ()

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Carsten Eckel

Abstract

The retail sectors in many industrialized countries have experienced a large increase in concentration and the appearance of so-called \"retail deserts\", areas of low retail provision. This study addresses the role of international trade in this process. The analysis shows that by raising product diversity, international trade also raises the costs of provision in retailing and leads to a consolidation in this industry. As a consequence, surviving retailers have larger catchment areas and consumers have to travel longer distances for their errands. These adjustments in retailing create a trade-off between diversity and accessibility, and international trade is not unambiguously welfare improving.

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Publisher Info
Paper provided by cege – Center for European, Governance and Economic Development Research, University of Goettingen (Germany). in its series cege – Center for European, Governance and Economic Development Research Discussion Papers with number 66.

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Length: 33
Date of creation: 15 Aug 2007
Date of revision:
Handle: RePEc:got:cegedp:66

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Web page: http://www.cege.uni-goettingen.de
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Find related papers by JEL classification:
F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

This paper has been announced in the following NEP Reports:

NEP-ALL-2007-08-27 (All new papers)
NEP-INT-2007-08-27 (International Trade)

References listed on IDEAS
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Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-59, December. [Downloadable!] (restricted)
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repec:ccp:journl:v:1:y:2001:i:3:p:247-281 is not listed on IDEAS
repec:ccp:journl:v:54:y:2003:i:1:p:111-125 is not listed on IDEAS
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- Christian Broda & David E. Weinstein, 2004. "Globalization and the Gains from Variety," NBER Working Papers 10314, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
- David E. Weinstein & Christian Broda, 2004. "Globalization And The Gains From Variety," Econometric Society 2004 Latin American Meetings 327, Econometric Society. [Downloadable!]
- David Weinstein & Christian Broda, 2004. "Globalization and the Gains from Variety," 2004 Meeting Papers 530, Society for Economic Dynamics. [Downloadable!]
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