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The Regional Impact of Wal-Mart Entrance: A Panel Study of the Retail Trade Sector in West Virginia

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  • Hicks, Michael J.

    (Marshall University, Huntington, West Virginia)

  • Wilburn, Kristy L.

    (Marshall University, Huntington, West Virginia)

Abstract

This paper examines the retail trade sector in 55 West Virginia counties from 1989 through 1998. A time-space recursive model evaluates the impact of the entrance of Wal-Mart stores in the county and in adjacent counties. This paper differs from earlier research in that it controls for endogeneity in the entrance decision of Wal-Mart in faster-growing counties, applies spatial analysis, and estimates impacts at the county level. This research finds a net increase in employment (55 jobs) and a mild increase in the number of firms (five) in the Retail Trade sector (SIC 52). The study supports the pull-factor explanation of retail trade growth. The paper concludes with further research recommendations.

Suggested Citation

  • Hicks, Michael J. & Wilburn, Kristy L., 2001. "The Regional Impact of Wal-Mart Entrance: A Panel Study of the Retail Trade Sector in West Virginia," The Review of Regional Studies, Southern Regional Science Association, vol. 31(3), pages 305-313, Winter.
    • Handle: RePEc:rre:publsh:v:31:y:2001:i:3:p:305-313
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    References listed on IDEAS

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    1. Stone, Kenneth E. & Deller, Steven C. & McConnon, James C. Jr., 1992. "The New Retail Environment in Maine," Staff General Research Papers Archive 11255, Iowa State University, Department of Economics.
    2. Ozment, John & Martin, Greg, 1990. "Changes in the competitive environments of rural trade areas : Effects of discount retail chains," Journal of Business Research, Elsevier, vol. 21(3), pages 277-287, November.
    3. Gruber, Jonathan, 1994. "The Incidence of Mandated Maternity Benefits," American Economic Review, American Economic Association, vol. 84(3), pages 622-641, June.
    4. Andrew W. Franklin, 2001. "The impact of Wal-Mart supercenters on supermarket concentration in U.S. metropolitan areas," Agribusiness, John Wiley & Sons, Ltd., vol. 17(1), pages 105-114.
    5. Barnes, Nora Ganim & Connell, Allison & Hermenegildo, Lisa & Mattson, Lucinda, 1996. "Regional differences in the economic impact of Wal-Mart," Business Horizons, Elsevier, vol. 39(4), pages 21-25.
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