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The Locational Impact of Wal-Mart Entrance: A Panel Study of the Retail Trade Sector in West Virginia

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Author Info
Michael J. Hicks (Air Force Institute of Technology)
Kristy Wilburn (Marshall University)

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Abstract

This paper examines the retail trade sector in 14 West Virginia counties from 1989 through 1996. A series of random effects models are tested on these panel data to measure the effect of the entrance of Wal- Mart stores in the county and in adjacent counties, and business cycle effects. This paper differs from earlier research in that it controls for endogeneity in the entrance decision of Wal-Mart in faster growing counties. This research finds a dramatic net increase in employment and wages in the Retail Trade sector (SIC 52) and a mild increase in the number of firms. The study finds a per capita wage increase in this industry, which is surprising but small. The paper concludes with further research recommendations.

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Paper provided by EconWPA in its series Urban/Regional with number 0511011.

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Date of creation: 21 Nov 2005
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Handle: RePEc:wpa:wuwpur:0511011

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R - Urban, Rural, and Regional Economics

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Gruber, Jonathan, 1994. "The Incidence of Mandated Maternity Benefits," American Economic Review, American Economic Association, vol. 84(3), pages 622-41, June. [Downloadable!] (restricted)
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  1. David Neumark & Junfu Zhang & Stephen Ciccarella, 2006. "The Effects of Wal-Mart on Local Labor Markets," Working Papers 060711, University of California-Irvine, Department of Economics. [Downloadable!]
    Other versions:
  2. whitney Oliver Peake & Maria I. Marshall, 2006. "What Do We Really Know About Entrepreneurs? An Analysis Of Nascent Entrepreneurs In Indiana," Working Papers 06-14, Purdue University, College of Agriculture, Department of Agricultural Economics. [Downloadable!]
  3. Goetz, Stephan J. & Swaminathan, Hema, 2004. "Wal-Mart and Rural Poverty," 2004 Annual meeting, August 1-4, Denver, CO 20149, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  4. Suzanne Konzelmann & Charles Craypo & Rabih Aridi & Frank Wilkinson, 2005. "The national varieties of capitalism: the cases of Wal-mart and Ikea," ESRC Centre for Business Research - Working Papers wp314, ESRC Centre for Business Research. [Downloadable!]
  5. Michael J. Hicks, 2005. "The Impact of Wal-Mart on Local Fiscal Health: Evidence from a Panel of Ohio Counties," Public Economics 0511016, EconWPA. [Downloadable!]
  6. Hicks, Michael, 2006. "Transportation and Infrastructure, Retail Clustering, and Local Public Finance: Evidence from Wal-Mart's Expansion," MPRA Paper 52, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  7. Martens, Bobby J. & Florax, Raymond J.G.M. & Dooley, Frank, 2005. "The Effect of Entry by Supercenter and Warehouse Club Retailers on Grocery Sales and Small Supermarkets: A Spatial Analysis," 2005 Annual meeting, July 24-27, Providence, RI 19176, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  8. Michael J. Hicks, 2005. "Does Wal-Mart Cause an Increase in Anti-Poverty Program Expenditures?," Public Economics 0511015, EconWPA. [Downloadable!]
  9. Michael Hicks, 2007. "Wal-Mart’s Impact on Local Revenue and Expenditure Instruments in Ohio, 1988–2003," Atlantic Economic Journal, International Atlantic Economic Society, vol. 35(1), pages 77-95, March. [Downloadable!] (restricted)
  10. Volpe, Richard & Lavoie, Nathalie, 2005. "The Effect of Wal-Mart Supercenters on Grocery Prices in New England," 2005 Annual meeting, July 24-27, Providence, RI 19188, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
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