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International trade and retailing: Diversity versus accessibility and the creation of retail deserts

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  • Eckel, Carsten

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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Bibliographic Info

Paper provided by University of Goettingen, Department of Economics in its series Center for European, Governance and Economic Development Research Discussion Papers with number 66.

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Date of creation: 2007
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Handle: RePEc:zbw:cegedp:66

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Postal: Platz der Göttinger Sieben 3, 37073 Göttingen
Web page: http://www.cege.wiso.uni-goettingen.de/
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Keywords: international trade; retailing; diversity; accessibility; retail deserts;

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  1. Timothy J. Richards & Stephen F. Hamilton, 2006. "Rivalry in Price and Variety among Supermarket Retailers," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 88(3), pages 710-726.
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  3. Ellickson, Paul, 2005. "Does Sutton Apply to Supermarkets?," Working Papers, Duke University, Department of Economics 05-05, Duke University, Department of Economics.
  4. Neil Wrigley & Daniel Warm & Barrie Margetts, 2003. "Deprivation, diet, and food-retail access: findings from the Leeds 'food deserts' study," Environment and Planning A, Pion Ltd, London, vol. 35(1), pages 151-188, January.
  5. Paul Dobson & Michael Waterson, 1999. "Retailer power: recent developments and policy implications," Economic Policy, CEPR;CES;MSH, CEPR;CES;MSH, vol. 14(28), pages 133-164, 04.
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  7. Paul Dobson & Roger Clarke & Stephen Davies & Michael Waterson, 2001. "Buyer Power and its Impact on Competition in the Food Retail Distribution Sector of the European Union," Journal of Industry, Competition and Trade, Springer, Springer, vol. 1(3), pages 247-281, September.
  8. Ellickson, Paul, 2005. "Supermarkets as a Natural Oligopoly," Working Papers, Duke University, Department of Economics 05-04, Duke University, Department of Economics.
  9. Howard Smith, 2004. "Supermarket Choice and Supermarket Competition in Market Equilibrium," Review of Economic Studies, Oxford University Press, vol. 71(1), pages 235-263.
  10. Christoph R. Weiss & Antje Wittkopp, 2005. "Retailer concentration and product innovation in food manufacturing," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 32(2), pages 219-244, June.
  11. Krugman, Paul R., 1979. "Increasing returns, monopolistic competition, and international trade," Journal of International Economics, Elsevier, Elsevier, vol. 9(4), pages 469-479, November.
  12. Sullivan, Mary W, 1997. "Slotting Allowances and the Market for New Products," Journal of Law and Economics, University of Chicago Press, University of Chicago Press, vol. 40(2), pages 461-93, October.
  13. repec:ccp:journl:v:1:y:2001:i:3:p:247-281 is not listed on IDEAS
  14. Howard Smith, 2004. "Supermarket Choice and Supermarket Competition in Market�Equilibrium," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 71(1), pages 235-263, 01.
  15. Steven C. Salop, 1979. "Monopolistic Competition with Outside Goods," Bell Journal of Economics, The RAND Corporation, The RAND Corporation, vol. 10(1), pages 141-156, Spring.
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