Sources of Global Heterogeneity in Retail Spending
AbstractEconomies worldwide vary greatly in terms of how much their consumers spend on various types of retail activities. The purpose of this paper is to examine how the regulatory characteristics as well as the natures and strategies of businesses are related to retail spending. We employed random effect time series cross sectional (TSCS) models linear in parameters for forty-eight economies using annual data for the 1999-2008 period. The results provided strong support that economic freedom, foreign direct investment (FDI) inflow and concentration of retail stores in an economy positively affect retail spending. We also found that tax and social security contributions as a proportion of the GDP is positively related to per capita grocery retail spending. A lack of data for a large number of economies, especially less developed ones potentially provides a limitation of this paper.
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Bibliographic InfoPaper provided by Research Institute for Economics & Business Administration, Kobe University in its series Discussion Paper Series with number DP2011-03.
Length: 35 pages
Date of creation: Jan 2011
Date of revision:
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Retail spending; FDI; Economic freedom; Time series cross sectional (TSCS) models;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-03-26 (All new papers)
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