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Revisiting Wal-Mart's Impact on Iowa Small Town Retail: Twenty-Five Years Later

Author

Listed:
  • Stone, Kenneth E.
  • Artz, Georgeanne M.

Abstract

Stone conducted the first study of Wal-Mart stores economic impact in Iowa in 1988. Since then, research on Wal-Mart's impacts has exploded. Recent studies employ sophisticated statistical techniques to more accurately measure the size and direction of effects. Many reach conclusions similar to Stone's original work. This paper updates the original Stone study with additional years of data. It draws on recent methodological advances to help account for Wal-Mart's strategic location decisions on estimated retail sales impacts in Iowa. Consistent with previous studies, we find that Wal-Mart's entry into smaller trade centers in Iowa had a big initial impact on host town retail sales, with some categories experiencing large significant increases while others saw declines in sales per capita. Wal-Mart's presence helped to stabilize or even expand the local retail sector of most rural Iowa host communities. To conclude, policy implications for local economic development officials are discussed.

Suggested Citation

  • Stone, Kenneth E. & Artz, Georgeanne M., 2012. "Revisiting Wal-Mart's Impact on Iowa Small Town Retail: Twenty-Five Years Later," Staff General Research Papers Archive 35202, Iowa State University, Department of Economics.
  • Handle: RePEc:isu:genres:35202
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    References listed on IDEAS

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    1. Emek Basker, 2005. "Job Creation or Destruction? Labor Market Effects of Wal-Mart Expansion," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 174-183, February.
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    3. Deller, Steven C. & McConnon, James Jr. C. & Stone, Kenneth E., 1991. "The Measurement of a Communityï¾’S Retail Market," Staff General Research Papers Archive 11229, Iowa State University, Department of Economics.
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    6. Stone, Kenneth E., 1995. "Competing With the Retail Giants," Staff General Research Papers Archive 5307, Iowa State University, Department of Economics.
    7. Dube, Arindrajit & Lester, T. William & Eidlin, Barry, 2007. "Firm Entry and Wages: Impact of Wal-Mart Growth on Earnings Throughout the Retail Sector," Institute for Research on Labor and Employment, Working Paper Series qt22s5k4pv, Institute of Industrial Relations, UC Berkeley.
    8. Georgeanne M. Artz & Kenneth E. Stone, 2006. "Analyzing the Impact of Wal-Mart Supercenters on Local Food Store Sales," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(5), pages 1296-1303.
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    Cited by:

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    More about this item

    Keywords

    Wal-Mart; retail trade; Iowa;
    All these keywords.

    JEL classification:

    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • R - Urban, Rural, Regional, Real Estate, and Transportation Economics

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