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Journal of Industrial Economics

Productivity Dynamics and the Role of ‘Big–Box’ Entrants in Retailing

Journal Article
Maican, Florin and Matilda Orth (2017). “Productivity Dynamics and the Role of ‘Big–Box’ Entrants in Retailing”. Journal of Industrial Economics 65(2), 397–438.

Florin Maican, Matilda Orth

We use a dynamic model to measure the impact of the entry of large stores on incumbents’ productivity separate from demand while accounting for local markets and the endogeneity of entry. Using data on all retail food stores in Sweden, we find that incumbents’ productivity increases after the entry of large stores and that the magnitude of the increase declines toward the upper part of the productivity distribution. Our findings highlight that large entrants drive productivity.

Florin Maican

+46 (0)31 786 4866
+46 (0)76 235 3039

Matilda Orth

+46 (0)8 665 4531
+46 (0)736 42 38 24