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A Dynamic Analysis of Entry Regulations and Productivity in Retail Trade

Author Info

  • Maican, Florin

    ()

    (Research Institute of Industrial Economics (IFN))

  • Orth, Matilda

    ()

    (Research Institute of Industrial Economics (IFN))

Abstract

Quantifying possible inefficiencies stemming from regulation is important to both policymakers and researchers. We use a dynamic structural model to evaluate the role of local market entry regulations in the productivity of retail trade. Our model is flexible with respect to how local market regulations influence store productivity and controls for demand in local markets. We combine the structural approach with detailed data on all stores in the Swedish retail industry. The results show that more liberal entry regulations increase future productivity and that the increase in productivity is larger for small stores and small markets than for large stores and large markets.

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Paper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 939.

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Length: 82 pages
Date of creation: 14 Nov 2012
Date of revision: 12 Apr 2014
Handle: RePEc:hhs:iuiwop:0939
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Keywords: Retail Trade; Regulation; Imperfect Competition; Dynamic Structural Model;

Find related papers by JEL classification:

  • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
  • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
  • L88 - Industrial Organization - - Industry Studies: Services - - - Government Policy
  • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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Cited by:

  1. Håkansson, Johan & Li, Yujiao & Mihaescu, Oana & Rudholm, Niklas, 2016. "Big-box retail entry in urban and rural areas: Are there productivity spillovers to incumbent retailers?," HUI Working Papers 118, HUI Research.
  2. Caroline Stiel & Astrid Cullmann & Maria Nieswand, 2015. "Productivity in Electricity Retail after Market Liberalisation: Analysing the Effects of Ownership and Firm's Governance Structure," Discussion Papers of DIW Berlin 1531, DIW Berlin, German Institute for Economic Research.
  3. Pozzi, Andrea & Schivardi, Fabiano, 2015. "Entry Regulation in Retail Markets," CEPR Discussion Papers 10836, C.E.P.R. Discussion Papers.

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