IDEAS home Printed from https://ideas.repec.org/a/sae/miceco/v6y2018i1-2p14-23.html
   My bibliography  Save this article

FDI in Retail: A Theoretical Analysis

Author

Listed:
  • Debasmita Basu
  • Abhirup Sarkar

Abstract

In this article, we build a theoretical model of retail and wholesale trade to analyse the effects of the entry of multinationals in wholesale and retail markets on the size of the domestic retail sector and prices. We show that the domestic retailing sector will expand, the retail price will fall and the wholesale price will go up, if and only if the retailing cost of the MNCs is greater than the retailing cost of the domestic retailers. JEL Classifications: F13, F61, F63

Suggested Citation

  • Debasmita Basu & Abhirup Sarkar, 2018. "FDI in Retail: A Theoretical Analysis," Studies in Microeconomics, , vol. 6(1-2), pages 14-23, June.
    • Handle: RePEc:sae:miceco:v:6:y:2018:i:1-2:p:14-23
    DOI: 10.1177/2321022218771763
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/2321022218771763
    Download Restriction: no
    File URL: https://libkey.io/10.1177/2321022218771763?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Graciela Ghezán & Mónica Mateos & Laura Viteri, 2002. "Impact of Supermarkets and Fast–Food Chains on Horticulture Supply Chains in Argentina," Development Policy Review, Overseas Development Institute, vol. 20(4), pages 389-408, September.
    2. Tony Killick, 2001. "Globalisation and the Rural Poor," Development Policy Review, Overseas Development Institute, vol. 19(2), pages 155-180, June.
    3. Swinnen, Johan F.M. & Maertens, Miet, 2007. "From Public to Private Governance in the Food Supply Chains of Emerging Economies," 103rd Seminar, April 23-25, 2007, Barcelona, Spain 9417, European Association of Agricultural Economists.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fabian Telch & Susan Appe, 2022. "How can countries improve human development? Four distinct national planning strategies and the challenges for human development ahead," Development Policy Review, Overseas Development Institute, vol. 40(2), March.
    2. Louw, Andre & Jordaan, Daniel du Plessis Scheepers & Ndanga, Leah Z.B. & Kirsten, Johann F., 2008. "Alternative marketing options for small-scale farmers in the wake of changing agri-food supply chains in South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 47(3), pages 1-22, September.
    3. Narrod, Clare & Roy, Devesh & Okello, Julius & Avendaño, Belem & Rich, Karl & Thorat, Amit, 2009. "Public-private partnerships and collective action in high value fruit and vegetable supply chains," Food Policy, Elsevier, vol. 34(1), pages 8-15, February.
    4. Sukhpal Singh, 2012. "Role of FDI in Multi-brand Retail Trade in India and its Implications," Review of Market Integration, India Development Foundation, vol. 4(3), pages 283-308, December.
    5. Nuhu, Ahmed Salim & Liverpool-Tasie, Lenis Saweda O. & Awokuse, Titus & Kabwe, Stephen, 2021. "Do benefits of expanded midstream activities in crop value chains accrue to smallholder farmers? Evidence from Zambia," World Development, Elsevier, vol. 143(C).
    6. Asfaw, Abay, 2007. "Supermarket purchases and the dietary patterns of households in Guatemala:," IFPRI discussion papers 696, International Food Policy Research Institute (IFPRI).
    7. Vilma ATKOČIŪNIENĖ & Eglė ŠTAREIKĖ, 2017. "Partnership Organizational Mechanism In Rural Areas Development: Stakeholders Analysis," Nowoczesne Systemy Zarządzania. Modern Management Systems, Military University of Technology, Faculty of Security, Logistics and Management, Institute of Organization and Management, issue 1, pages 71-88.

    More about this item

    Keywords

    FDI; Trade policy; retail sector; agriculture;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F61 - International Economics - - Economic Impacts of Globalization - - - Microeconomic Impacts
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:miceco:v:6:y:2018:i:1-2:p:14-23. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.