IDEAS home Printed from https://ideas.repec.org/p/kob/dpaper/dp2011-03.html
   My bibliography  Save this paper

Sources of Global Heterogeneity in Retail Spending

Author

Listed:
  • Nir Kshetri

    (The University of North Carolina at Greensboro, USA)

  • Ralf Bebenroth

    (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan)

Abstract

Economies worldwide vary greatly in terms of how much their consumers spend on various types of retail activities. The purpose of this paper is to examine how the regulatory characteristics as well as the natures and strategies of businesses are related to retail spending. We employed random effect time series cross sectional (TSCS) models linear in parameters for forty-eight economies using annual data for the 1999-2008 period. The results provided strong support that economic freedom, foreign direct investment (FDI) inflow and concentration of retail stores in an economy positively affect retail spending. We also found that tax and social security contributions as a proportion of the GDP is positively related to per capita grocery retail spending. A lack of data for a large number of economies, especially less developed ones potentially provides a limitation of this paper.

Suggested Citation

  • Nir Kshetri & Ralf Bebenroth, 2011. "Sources of Global Heterogeneity in Retail Spending," Discussion Paper Series DP2011-03, Research Institute for Economics & Business Administration, Kobe University.
    • Handle: RePEc:kob:dpaper:dp2011-03
    as

    Download full text from publisher

    File URL: https://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/DP2011-03.pdf
    File Function: First version, 2011
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Oz Shy & Rune Stenbacka, 2008. "Price Competition, Business Hours and Shopping Time Flexibility," Economic Journal, Royal Economic Society, vol. 118(531), pages 1171-1195, August.
    2. Blisard, Noel & Stewart, Hayden, 2007. "Food Spending in American Households, 2003-04," Economic Information Bulletin 59033, United States Department of Agriculture, Economic Research Service.
    3. Rose, Andrew K., 2004. "Do WTO members have more liberal trade policy?," Journal of International Economics, Elsevier, vol. 63(2), pages 209-235, July.
    4. Michael Keren & Gur Ofer, 2002. "The Role of FDI in Trade and Financial Services in Transition: What Distinguishes Transition Economies from Developing Economies?," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 44(1), pages 15-45, April.
    5. Cédric Durand, 2007. "Externalities from foreign direct investment in the Mexican retailing sector," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 31(3), pages 393-411, May.
    6. Artis, Michael & Nixson, Frederick, 2007. "Economics of the European Union," OUP Catalogue, Oxford University Press, edition 4, number 9780199298969.
    7. Coulter, Robin A & Price, Linda L & Feick, Lawrence, 2003. "Rethinking the Origins of Involvement and Brand Commitment: Insights from Postsocialist Central Europe," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 30(2), pages 151-169, September.
    8. K-N Lau & P-Y Lam, 2002. "Economic freedom ranking of 161 countries in year 2000: a minimum disagreement approach," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 53(6), pages 664-671, June.
    9. Dickson, Peter R, 2000. "Understanding the Trade Winds: The Global Evolution of Production, Consumption, and the Internet," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 27(1), pages 115-122, June.
    10. Maddala, G S, 1971. "The Use of Variance Components Models in Pooling Cross Section and Time Series Data," Econometrica, Econometric Society, vol. 39(2), pages 341-358, March.
    11. Regmi, Anita & Gehlhar, Mark J., 2012. "Processed Food Trade Pressured by Evolving Global Supply Chains," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, pages 1-8, August.
    12. Marc-André Gagnon, 2007. "Capital, Power and Knowledge According to Thorstein Veblen: Reinterpreting the Knowledge-Based Economy," Journal of Economic Issues, Taylor & Francis Journals, vol. 41(2), pages 593-600, June.
    13. John R. Hanson, 2003. "Proxies in the New Political Economy: Caveat Emptor," Economic Inquiry, Western Economic Association International, vol. 41(4), pages 639-646, October.
    14. Thomas Reardon & Spencer Henson & Julio Berdegué, 2007. "'Proactive fast-tracking' diffusion of supermarkets in developing countries: implications for market institutions and trade," Journal of Economic Geography, Oxford University Press, vol. 7(4), pages 399-431, July.
    15. Fuller, Wayne A. & Battese, George E., 1974. "Estimation of linear models with crossed-error structure," Journal of Econometrics, Elsevier, vol. 2(1), pages 67-78, May.
    16. Petter Næss, 2006. "Accessibility, Activity Participation and Location of Activities: Exploring the Links between Residential Location and Travel Behaviour," Urban Studies, Urban Studies Journal Limited, vol. 43(3), pages 627-652, March.
    17. Ian Clarke & PETER RIMMER, 1997. "The Anatomy of Retail Internationalisation: Daimaru's Decision to Invest in Melbourne, Australia," The Service Industries Journal, Taylor & Francis Journals, vol. 17(3), pages 361-382, July.
    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. Rachel A. Rosenfeld & Franã‡Ois Nielsen, 1984. "Inequality and Careers," Sociological Methods & Research, , vol. 12(3), pages 279-321, February.
    2. Emlinger, Charlotte & Poncet, Sandra, 2018. "With a little help from my friends: Multinational retailers and China's consumer market penetration," Journal of International Economics, Elsevier, vol. 112(C), pages 1-12.
    3. Susan Chen & Raymond J. G. M. Florax & Samantha Snyder & Christopher C. Miller, 2010. "Obesity and Access to Chain Grocers," Economic Geography, Clark University, vol. 86(4), pages 431-452, October.
    4. Walker A. Pollard, 1983. "Presidential Elections: Cyclical and Distributional Economic Effects," Public Finance Review, , vol. 11(2), pages 217-236, April.
    5. J. S. Mehta & G. V. L. Narasimham & P. A. V. B. Swamy, 1975. "Estimation of a dynamic demand function for gasoline with different schemes of parameter variation," International Finance Discussion Papers 70, Board of Governors of the Federal Reserve System (U.S.).
    6. Marius C. O. Amba, 2021. "Simultaneous Equations with Three Way Error Components," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 19(3), pages 583-596, September.
    7. Laura Magazzini & Giorgio Calzolari, 2010. "Negative variance estimates in panel data models," Working Papers 15/2010, University of Verona, Department of Economics.
    8. Gibson, John & Kim, Bonggeun, 2013. "Do the urban poor face higher food prices? Evidence from Vietnam," Food Policy, Elsevier, vol. 41(C), pages 193-203.
    9. Jonsson, Robert, 2003. "On the problem of optimal inference for time heterogeneous data with error components regression structure," Working Papers in Economics 110, University of Gothenburg, Department of Economics.
    10. Mai Yamada, 2019. "Business Hours, Store Quality, and Social Welfare," Journal of Industry, Competition and Trade, Springer, vol. 19(3), pages 465-478, September.
    11. Silvio R. Rendon, 2013. "Fixed and Random Effects in Classical and Bayesian Regression," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 75(3), pages 460-476, June.
    12. Abonazel, Mohamed R., 2016. "Bias Correction Methods for Dynamic Panel Data Models with Fixed Effects," MPRA Paper 70628, University Library of Munich, Germany.
    13. Dutt, Pushan & Mihov, Ilian & Van Zandt, Timothy, 2013. "The effect of WTO on the extensive and the intensive margins of trade," Journal of International Economics, Elsevier, vol. 91(2), pages 204-219.
    14. O'Brien, Raymond & Patacchini, Eleonora, 2003. "Testing the exogeneity assumption in panel data models with "non classical" disturbances," Discussion Paper Series In Economics And Econometrics 0302, Economics Division, School of Social Sciences, University of Southampton.
    15. Arpino, Bruno & Varriale, Roberta, 2009. "Assessing the quality of institutions’ rankings obtained through multilevel linear regression models," MPRA Paper 19873, University Library of Munich, Germany.
    16. Kilby, Christopher, 2005. "World Bank lending and regulation," Economic Systems, Elsevier, vol. 29(4), pages 384-407, December.
    17. Maurice J.G. Bun & Martin A. Carree & Artūras Juodis, 2017. "On Maximum Likelihood Estimation of Dynamic Panel Data Models," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 79(4), pages 463-494, August.
    18. Varela, Mauricio J., 2018. "The costs of growth: Accelerated growth and crowd-out in the Mexican supermarket industry," International Journal of Industrial Organization, Elsevier, vol. 61(C), pages 1-52.
    19. Zeytoon Nejad Moosavian, Seyyed Ali & Goodwin, Barry K., 2018. "GENERALIZING THE GENERAL: Generalizing the CES Production Function to Allow for the Flexibility of Input-Driven Output Risk and Viability of Input Thresholds," 2018 Annual Meeting, August 5-7, Washington, D.C. 274352, Agricultural and Applied Economics Association.
    20. Vincenzo Merella & Steve Satchell, 2005. "The Impact of Consumer Confidence on Expected Utility Maximization: A Contribution to the Equity Premium Puzzle Literature," Birkbeck Working Papers in Economics and Finance 0525, Birkbeck, Department of Economics, Mathematics & 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:kob:dpaper:dp2011-03. 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: Office of Promoting Research Collaboration, Research Institute for Economics & Business Administration, Kobe University (email available below). General contact details of provider: https://edirc.repec.org/data/rikobjp.html .

    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.