Wal-Mart and Small Business: Boon or Bane?
This paper tests the impact of Wal-Mart discount and superstore presence on the number of small businesses in Iowa counties from 1989-2003. I employ and compare two well-known identification strategies in a spatial autoregressive model. I find no statistically meaningful impact of Wal-Mart on small firms (1-20 employees in three employment ranges), though there is weak statistical evidence that an own-county Wal-Mart increases the number of small businesses while Wal-Marts in adjacent counties reduce the number of small businesses. These results mimic several other studies of Wal-Mart including Hicks and Wilburn (2001), Hicks (2007), and Sobel and Dean (2008).
References listed on IDEAS
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- Neumark, David & Zhang, Junfu & Ciccarella, Stephen, 2008.
"The effects of Wal-Mart on local labor markets,"
Journal of Urban Economics,
Elsevier, vol. 63(2), pages 405-430, March.
- David Neumark & Junfu Zhang & Stephen Ciccarella, 2005. "The Effects of Wal-Mart on Local Labor Markets," NBER Working Papers 11782, National Bureau of Economic Research, Inc.
- 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.
- Neumark, David & Zhang, Junfu & Ciccarella, Stephen, 2007. "The Effects of Wal-Mart on Local Labor Markets," IZA Discussion Papers 2545, Institute for the Study of Labor (IZA).
- Artz, Georgeanne M., 1999. "The Impact of Wal-Mart on Retail Market Structure in Maine," Staff General Research Papers Archive 4003, Iowa State University, Department of Economics.
- A. Bhargava & L. Franzini & W. Narendranathan, 2006. "Serial Correlation and the Fixed Effects Model," World Scientific Book Chapters,in: Econometrics, Statistics And Computational Approaches In Food And Health Sciences, chapter 4, pages 61-77 World Scientific Publishing Co. Pte. Ltd..
- A. Bhargava & L. Franzini & W. Narendranathan, 1982. "Serial Correlation and the Fixed Effects Model," Review of Economic Studies, Oxford University Press, vol. 49(4), pages 533-549.
- White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
- 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.
- Jinyong Hahn & Jerry Hausman, 2002. "A New Specification Test for the Validity of Instrumental Variables," Econometrica, Econometric Society, vol. 70(1), pages 163-189, January.
- Jinyong Hahn & Jerry Hausman, 1999. "A New Specification Test for the Validity of Instrumental Variables," Working papers 99-11, Massachusetts Institute of Technology (MIT), 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.
- Hicks, Michael J. & Wilburn, Kristy L., 2001. "The Regional Impact of Wal-Mart Entrance: A Panel Study of the Retail Trade Sector in West Virginia," The Review of Regional Studies, Southern Regional Science Association, vol. 31(3), pages 305-313, Winter. Full references (including those not matched with items on IDEAS)
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