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

  • Hicks, Michael J.

    (Marshall University, Huntington, West Virginia)

  • Wilburn, Kristy L.

    (Marshall University, Huntington, West Virginia)

This paper examines the retail trade sector in 55 West Virginia counties from 1989 through 1998. A time-space recursive model evaluates the impact of the entrance of Wal-Mart stores in the county and in adjacent counties. This paper differs from earlier research in that it controls for endogeneity in the entrance decision of Wal-Mart in faster-growing counties, applies spatial analysis, and estimates impacts at the county level. This research finds a net increase in employment (55 jobs) and a mild increase in the number of firms (five) in the Retail Trade sector (SIC 52). The study supports the pull-factor explanation of retail trade growth. The paper concludes with further research recommendations.

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Article provided by Southern Regional Science Association in its journal The Review of Regional Studies.

Volume (Year): 31 (2001)
Issue (Month): 3 (Winter)
Pages: 305-313

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Handle: RePEc:rre:publsh:v:31:y:2001:i:3:p:305-313
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