Revisiting Wal-Martâ€™s Impact on Iowa Small Town Retail: Twenty-Five Years Later
Stone conducted the first study of Wal-Mart stores economic impact in Iowa in 1988. Since then, research on Wal-Martâ€™s impacts has exploded. Recent studies employ sophisticated statistical techniques to more accurately measure the size and direction of effects. Many reach conclusions similar to Stoneâ€™s original work. This paper updates the original Stone study with additional years of data. It draws on recent methodological advances to help account for Wal-Martâ€™s strategic location decisions on estimated retail sales impacts in Iowa. Consistent with previous studies, we find that Wal-Martâ€™s entry into smaller trade centers in Iowa had a big initial impact on host town retail sales, with some categories experiencing large significant increases while others saw declines in sales per capita. Wal-Martâ€™s presence helped to stabilize or even expand the local retail sector of most rural Iowa host communities. To conclude, policy implications for local economic development officials are discussed.
|Date of creation:||31 May 2012|
|Date of revision:|
|Contact details of provider:|| Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070|
Phone: +1 515.294.6741
Fax: +1 515.294.0221
Web page: http://www.econ.iastate.edu
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Georgeanne M. Artz & Kenneth E. Stone, 2006. "Analyzing the Impact of Wal-Mart Supercenters on Local Food Store Sales," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(5), pages 1296-1303.
- Stone, Kenneth E., 1995. "Competing With the Retail Giants," Staff General Research Papers 5307, Iowa State University, Department of Economics.
- Emek Basker, 2005.
"Job Creation or Destruction? Labor Market Effects of Wal-Mart Expansion,"
The Review of Economics and Statistics,
MIT Press, vol. 87(1), pages 174-183, February.
- Emek Basker, 2003. "Job Creation or Destruction? Labor-Market Effects of Wal-Mart Expansion," Labor and Demography 0303002, EconWPA, revised 11 Mar 2005.
- Emek Basker, 2002. "Job Creation or Destruction? Labor-Market Effects of Wal-Mart Expansion," Working Papers 0215, Department of Economics, University of Missouri, revised Jan 2004.
- Basker, Emek, 2011.
"The Causes and Consequences of Wal-Mart’s Growth,"
Russian Presidential Academy of National Economy and Public Administration, vol. 5, pages 110—134.
- Panle Jia, 2008. "What Happens When Wal-Mart Comes to Town: An Empirical Analysis of the Discount Retailing Industry," Econometrica, Econometric Society, vol. 76(6), pages 1263-1316, November.
- A. Smith, Jeffrey & E. Todd, Petra, 2005.
"Does matching overcome LaLonde's critique of nonexperimental estimators?,"
Journal of Econometrics,
Elsevier, vol. 125(1-2), pages 305-353.
- Jeffrey Smith & Petra Todd, 2003. "Does Matching Overcome Lalonde's Critique of Nonexperimental Estimators?," University of Western Ontario, Centre for Human Capital and Productivity (CHCP) Working Papers 20035, University of Western Ontario, Centre for Human Capital and Productivity (CHCP).
- Stone, Kenneth E., 1991. "Competing with the Mass Merchandisers," Staff General Research Papers 11230, Iowa State University, Department of Economics.
- Dube, Arindrajit & Lester, T. William & Eidlin, Barry, 2007. "Firm Entry and Wages: Impact of Wal-Mart Growth on Earnings Throughout the Retail Sector," Institute for Research on Labor and Employment, Working Paper Series qt22s5k4pv, Institute of Industrial Relations, UC Berkeley.
- Irwin, Elena G. & Clark, Jill, 2006. "Wall Street vs. Main Street: What are the Benefits and Costs of Wal-Mart to Local Communities?," Choices, Agricultural and Applied Economics Association, vol. 21(2).
- Deller, Steven C. & McConnon, James Jr. C. & Stone, Kenneth E., 1991. "The Measurement of a Communityï¾’S Retail Market," Staff General Research Papers 11229, Iowa State University, Department of Economics.
- 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.
When requesting a correction, please mention this item's handle: RePEc:isu:genres:35202. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Curtis Balmer)
If references are entirely missing, you can add them using this form.