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How Does Big-Box Entry Affect Labor Productivity in Durable Goods Retailing? A Synthetic Control Approach. How Does Big-Box Entry Affect Labor Productivity in Durable Goods Retailing? A Synthetic Control Approach
Dalarna University, School of Technology and Business Studies, Economics. HUI Research.
Dalarna University, School of Technology and Business Studies, Microdata Analysis.
Dalarna University, School of Technology and Business Studies, Microdata Analysis.ORCID iD: 0000-0003-2317-9157
2018 (English)Report (Other academic)
Abstract [en]

Using  data  from  2001–2012,  the  effects  of  IKEA  entry  in  four  Swedish  municipalities,   2004–2007,   on   labor   productivity   in   durable   goods   retailing   is   investigated  using  synthetic  control  methods.  We contribute  to  the  literature  on  synthetic   control   methods   by considering   parametric   specifications   of   the   intervention effect, which in our case arguably improves the likelihood of identifying the intervention effect of IKEA entry on labor productivity. As inference relies on a single  treated  observational  unit  (i.e.,  a  single  IKEA-entry  municipality),  statistical  testing  is  a  challenge,  and  randomization  and  replication  for  inference  is  done  with  regard to the pool of control municipalities. Our results indicate that in three out of four  entry  municipalities,  labor  productivity  increased  more  than  in  their  synthetic  counterparts after IKEA entry, and that the size of the positive effect is related to the size of the new IKEA relative to the size of the existing durable goods retail sector in the entry municipalities, with larger positive effects found in municipalities where the new IKEA was large relative to the existing durable goods retail market.

Place, publisher, year, edition, pages
Stockholm, 2018.
Series
HUI Working Paper Series ; 130
Keywords [en]
Productivity growth;Quantitative Case Study; Parametric Synthetic Matching;Bootstrap Confidence Intervals
National Category
Economics
Research subject
Complex Systems – Microdata Analysis, Handel och regional tillväxt. -Kopplingen mellan regionalt tillväxtarbete och lokala etableringsstrategier.
Identifiers
URN: urn:nbn:se:du-27305OAI: oai:DiVA.org:du-27305DiVA, id: diva2:1185365
Available from: 2018-02-23 Created: 2018-02-23 Last updated: 2018-06-15Bibliographically approved

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Authority records BETA

Rudholm, NiklasLi, YujiaoCarling, Kenneth

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CiteExportLink to record
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Citation style
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