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Revisiting Wal-Mart's impact on Iowa small town retail: twenty-five years later

Author

Listed:
  • Stone, Kenneth E.
  • Artz, Georgeanne M.

Abstract

Stone conducted the first study of Wal-Mart stores economic impact in Iowa in 1988. Since then, research on Wal-Mart’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 Stone’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-Mart’s strategic location decisions on estimated retail sales impacts in Iowa. Consistent with previous studies, we find that Wal-Mart’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-Mart’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.

Suggested Citation

  • Stone, Kenneth E. & Artz, Georgeanne M., 2012. "Revisiting Wal-Mart's impact on Iowa small town retail: twenty-five years later," ISU General Staff Papers 201205310700001070, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:201205310700001070
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    Cited by:

    1. Han, Mengjie & Mihaescu, Oana & Li, Yujiao & Rudholm, Niklas, 2018. "Comparison and one-stop shopping after big-box retail entry: A spatial difference-in-difference analysis," Journal of Retailing and Consumer Services, Elsevier, vol. 40(C), pages 175-187.

    More about this item

    JEL classification:

    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • R - Urban, Rural, Regional, Real Estate, and Transportation Economics

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