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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

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    File URL: http://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/DP2011-03.pdf
    File Function: First version, 2011
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    References listed on IDEAS

    as
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    5. Cédric Durand, 2007. "Externalities from foreign direct investment in the Mexican retailing sector," Cambridge Journal of Economics, Oxford University Press, vol. 31(3), pages 393-411, May.
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    8. 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.
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    Keywords

    Retail spending; FDI; Economic freedom; Time series cross sectional (TSCS) models;

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