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Corporate Retail Outlets are Blessings in Disguise for Unorganized Retail Outlets: An Empirical Analysis in the Indian Context

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Listed:
  • Kaliappa Kalirajan
  • Kanhaiya Singh

Abstract

The objective of the present study is to answer the question whether the corporate organized retail outlets (ORO) have exerted any harmful effects on the small unorganized retail outlets(URO) in India. Answer to this question will facilitate us to gauge the impact of corporate FDI in retail on the survival of the small unorganized retail outlets, which is currently debated rigorously in India. Based on the primary survey data collected from the National Capital Region and Chennai between November 2008 and March 2010, the analysis in this study shows that the emergence of ORO did displace some URO, but increased employment in urban areas. The displaced URO, which opened businesses away from ORO have increased their profits. This indeed is a blessing in disguise for the small unorganized retail outlets. Thus, the total effects produced net social benefit in terms of income and employment generation in the concerned region

Suggested Citation

  • Kaliappa Kalirajan & Kanhaiya Singh, 2013. "Corporate Retail Outlets are Blessings in Disguise for Unorganized Retail Outlets: An Empirical Analysis in the Indian Context," ASARC Working Papers 2013-04, The Australian National University, Australia South Asia Research Centre.
    • Handle: RePEc:pas:asarcc:2013-04
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    File URL: https://crawford.anu.edu.au/acde/asarc/pdf/papers/2013/WP2013_04.pdf
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    References listed on IDEAS

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    1. Mathew Joseph & Nirupama Soundararajan & Manisha Gupta & Sanghamitra Sahu, 2008. "Impact of Organized Retailing on the Unorganized Sector," Macroeconomics Working Papers 22167, East Asian Bureau of Economic Research.
    2. Anon-Higon, Dolores & Vasilakos, Nicholas, 2008. "Productivity, Multinationals and Knowledge Spillovers: Evidence from the UK Retail Sector," MPRA Paper 7181, University Library of Munich, Germany.
    3. Mathew Joseph, 2008. "Impact of Organized Retailing on the Unorganized Sector," Working Papers id:1672, eSocialSciences.
    4. Lorenzo Cappellari & Stephen P. Jenkins, 2003. "Multivariate probit regression using simulated maximum likelihood," Stata Journal, StataCorp LLC, vol. 3(3), pages 278-294, September.
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    Cited by:

    1. Lakatos, Csilla & Fukui, Tani, 2014. "The Liberalization of Retail Services in India," World Development, Elsevier, vol. 59(C), pages 327-340.

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    More about this item

    Keywords

    Big shopping Malls; corporate organized retail outlets; small unorganized retail outlets; India.;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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