The Regional Impact of Wal-Mart Entrance: A Panel Study of the Retail Trade Sector in 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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- Stone, Kenneth E. & Deller, Steven C. & McConnon, James C. Jr., 1992. "The New Retail Environment in Maine," Staff General Research Papers Archive 11255, Iowa State University, Department of Economics.
- Barnes, Nora Ganim & Connell, Allison & Hermenegildo, Lisa & Mattson, Lucinda, 1996. "Regional differences in the economic impact of Wal-Mart," Business Horizons, Elsevier, vol. 39(4), pages 21-25.
- Ozment, John & Martin, Greg, 1990. "Changes in the competitive environments of rural trade areas : Effects of discount retail chains," Journal of Business Research, Elsevier, vol. 21(3), pages 277-287, November.
- Andrew W. Franklin, 2001. "The impact of Wal-Mart supercenters on supermarket concentration in U.S. metropolitan areas," Agribusiness, John Wiley & Sons, Ltd., vol. 17(1), pages 105-114.
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