Revisiting Wal-Martâ€™s Impact on Iowa Small Town Retail: Twenty-Five Years Later
AbstractStone conducted the first study of Wal-Mart stores economic impact in Iowa in 1988.� Since then, research on Wal-Martâ€™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 Stoneâ€™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-Martâ€™s strategic location decisions on estimated retail sales impacts in Iowa.� Consistent with previous studies, we find that Wal-Martâ€™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-Martâ€™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.
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Bibliographic InfoPaper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 35203.
Date of creation: 31 May 2012
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Wal-Mart; retail trade; Iowa;
Find related papers by 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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