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Did Liberalization Start A Retail Revolution In Brazil?

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  • Vries, Gaaitzen J. de

    (Groningen University)

Abstract

In the 1990s, Brazil opened up its retail sector to foreign direct investment. It was expected that the entry and market expansion of retail chains would spur the development of a sector long characterized by small family-run stores. However, the effects on growth have been disappointing. Our results suggest that liberalization failed to deliver high growth because reallocation dynamics did not contribute to growth. For the period 1996-2004, we find little evidence that more-productive new establishments from retail chains replaced less-productive independent stores.

Suggested Citation

  • Vries, Gaaitzen J. de, 2008. "Did Liberalization Start A Retail Revolution In Brazil?," GGDC Research Memorandum GD-105, Groningen Growth and Development Centre, University of Groningen.
    • Handle: RePEc:gro:rugggd:gd-105
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    File URL: http://irs.ub.rug.nl/ppn/317338994
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