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Wal-Mart and Small Business: Boon or Bane?

  • Hicks, Michael J.

    (Ball State U)

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).

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

Volume (Year): 39 (2009)
Issue (Month): 1 ()
Pages: 73-83

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Handle: RePEc:rre:publsh:v:39:y:2009:i:1:p:73-83
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