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The effect of legal barriers to entry in the Spanish retail market: a local market approach

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  • Luis Orea

    (Universidad de Oviedo)

Abstract

Recent studies have shown that barriers to entry for large retail establishments in Spain have been increased in the last decade. Using information on local markets, we test whether the entry of large retail establishments was effectively limited by regional regulation and whether it effectively protected in-town shops from competition. We find that if entry barriers were reduced to their average level in 1997, the number of large retail establishments would increase by 11.7%. We also find that over-regulation in 1997 has improved in-town shops’ market position, with their number increasing by 13.8%.

Suggested Citation

  • Luis Orea, 2010. "The effect of legal barriers to entry in the Spanish retail market: a local market approach," Hacienda Pública Española / Review of Public Economics, IEF, vol. 193(2), pages 49-74, June.
    • Handle: RePEc:hpe:journl:y:2010:v:193:i:2:p:49-74
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    Cited by:

    1. Álvarez, Inmaculada C. & Orea, Luis & Perez-Mendez, Jose A., 2019. "Rural and agricultural development by land consolidation: a spatial production analysis of Asturias´ parishes," Efficiency Series Papers 2019/04, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).

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    More about this item

    Keywords

    Barriers to entry; retail distribution; regulation;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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