Do the Biggest Aisles Serve a Brighter Future? Global Retail Chains and Their Implications for Romania
During the past two decades many economies have opened their retail sector to foreign direct investment, yet little is known about possible implications of such liberalization on the economies of developing host countries. Using firm-level data fro...
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| Format: | Policy Research Working Paper |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2008/06/9573344/biggest-aisles-serve-brighter-future-global-retail-chains-implications-romania http://hdl.handle.net/10986/6876 |
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okr-10986-68762021-04-23T14:02:32Z Do the Biggest Aisles Serve a Brighter Future? Global Retail Chains and Their Implications for Romania Javorcik, Beata S. Li, Yue ACCESS TO INFORMATION AGRICULTURAL ECONOMICS AGRICULTURE ASSETS BALANCE SHEETS BENCHMARK BEVERAGES BUSINESS STRATEGY COMPUTERS CONSTANT RETURNS TO SCALE CONSUMER GOODS CONSUMER PRICE CONSUMER PRICE INDEX CONSUMERS CONTACT INFORMATION COUNTRY OF ORIGIN DAIRY DEMAND FOR FOOD DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISTRIBUTION SYSTEM DISTRIBUTION SYSTEMS ECONOMETRIC ANALYSES ECONOMETRIC ANALYSIS ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC INTEGRATION ECONOMIES OF SCALE ENDOGENOUS VARIABLES EQUIPMENT EXPENDITURE EXPORTS EXTERNALITIES FINANCIAL CRISIS FINANCIAL SUPPORT FOOD IMPORTS FOOD PRODUCERS FOOD PRODUCTION FOOD PRODUCTS FOODS FOREIGN DIRECT INVESTMENT FOREIGN INVESTMENT FRUIT GDP GDP DEFLATOR GROWTH RATE HYPERMARKET HYPERMARKETS IMAGE INCOME INDEX NUMBERS INFLATION INFORMATION NETWORK INNOVATION INNOVATIONS INTERNATIONAL TRADE INVENTORY LATIN AMERICAN During the past two decades many economies have opened their retail sector to foreign direct investment, yet little is known about possible implications of such liberalization on the economies of developing host countries. Using firm-level data from Romania, this study examines how the presence of global retail chains affects firms in the supplying industries. Applying a difference-in-differences method, the econometric analyses yield the following conclusions. The expansion of global retail chains leads to a significant increase in the total factor productivity in the supplying industries. Their presence in a region increases the total factor productivity of firms in the supplying industries by 15.2 percent and doubling the number of chains leads to a 10.8 percent increase in total factor productivity. However, the expansion benefits larger firms the most and has a much smaller impact on small enterprises. This conclusion is robust to several extensions and specifications, including the instrumental variable approach. These results suggest that the opening of the retail sector to foreign direct investment may stimulate productivity growth in upstream manufacturing and extend our understanding of foreign direct investment in service sectors. 2012-06-01T17:33:26Z 2012-06-01T17:33:26Z 2008-06 http://documents.worldbank.org/curated/en/2008/06/9573344/biggest-aisles-serve-brighter-future-global-retail-chains-implications-romania http://hdl.handle.net/10986/6876 English Policy Research Working Paper; No. 4650 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Europe and Central Asia Romania |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCESS TO INFORMATION AGRICULTURAL ECONOMICS AGRICULTURE ASSETS BALANCE SHEETS BENCHMARK BEVERAGES BUSINESS STRATEGY COMPUTERS CONSTANT RETURNS TO SCALE CONSUMER GOODS CONSUMER PRICE CONSUMER PRICE INDEX CONSUMERS CONTACT INFORMATION COUNTRY OF ORIGIN DAIRY DEMAND FOR FOOD DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISTRIBUTION SYSTEM DISTRIBUTION SYSTEMS ECONOMETRIC ANALYSES ECONOMETRIC ANALYSIS ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC INTEGRATION ECONOMIES OF SCALE ENDOGENOUS VARIABLES EQUIPMENT EXPENDITURE EXPORTS EXTERNALITIES FINANCIAL CRISIS FINANCIAL SUPPORT FOOD IMPORTS FOOD PRODUCERS FOOD PRODUCTION FOOD PRODUCTS FOODS FOREIGN DIRECT INVESTMENT FOREIGN INVESTMENT FRUIT GDP GDP DEFLATOR GROWTH RATE HYPERMARKET HYPERMARKETS IMAGE INCOME INDEX NUMBERS INFLATION INFORMATION NETWORK INNOVATION INNOVATIONS INTERNATIONAL TRADE INVENTORY LATIN AMERICAN |
| spellingShingle |
ACCESS TO INFORMATION AGRICULTURAL ECONOMICS AGRICULTURE ASSETS BALANCE SHEETS BENCHMARK BEVERAGES BUSINESS STRATEGY COMPUTERS CONSTANT RETURNS TO SCALE CONSUMER GOODS CONSUMER PRICE CONSUMER PRICE INDEX CONSUMERS CONTACT INFORMATION COUNTRY OF ORIGIN DAIRY DEMAND FOR FOOD DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISTRIBUTION SYSTEM DISTRIBUTION SYSTEMS ECONOMETRIC ANALYSES ECONOMETRIC ANALYSIS ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC INTEGRATION ECONOMIES OF SCALE ENDOGENOUS VARIABLES EQUIPMENT EXPENDITURE EXPORTS EXTERNALITIES FINANCIAL CRISIS FINANCIAL SUPPORT FOOD IMPORTS FOOD PRODUCERS FOOD PRODUCTION FOOD PRODUCTS FOODS FOREIGN DIRECT INVESTMENT FOREIGN INVESTMENT FRUIT GDP GDP DEFLATOR GROWTH RATE HYPERMARKET HYPERMARKETS IMAGE INCOME INDEX NUMBERS INFLATION INFORMATION NETWORK INNOVATION INNOVATIONS INTERNATIONAL TRADE INVENTORY LATIN AMERICAN Javorcik, Beata S. Li, Yue Do the Biggest Aisles Serve a Brighter Future? Global Retail Chains and Their Implications for Romania |
| geographic_facet |
Europe and Central Asia Romania |
| relation |
Policy Research Working Paper; No. 4650 |
| description |
During the past two decades many
economies have opened their retail sector to foreign direct
investment, yet little is known about possible implications
of such liberalization on the economies of developing host
countries. Using firm-level data from Romania, this study
examines how the presence of global retail chains affects
firms in the supplying industries. Applying a
difference-in-differences method, the econometric analyses
yield the following conclusions. The expansion of global
retail chains leads to a significant increase in the total
factor productivity in the supplying industries. Their
presence in a region increases the total factor productivity
of firms in the supplying industries by 15.2 percent and
doubling the number of chains leads to a 10.8 percent
increase in total factor productivity. However, the
expansion benefits larger firms the most and has a much
smaller impact on small enterprises. This conclusion is
robust to several extensions and specifications, including
the instrumental variable approach. These results suggest
that the opening of the retail sector to foreign direct
investment may stimulate productivity growth in upstream
manufacturing and extend our understanding of foreign direct
investment in service sectors. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Javorcik, Beata S. Li, Yue |
| author_facet |
Javorcik, Beata S. Li, Yue |
| author_sort |
Javorcik, Beata S. |
| title |
Do the Biggest Aisles Serve a Brighter Future? Global Retail Chains and Their Implications for Romania |
| title_short |
Do the Biggest Aisles Serve a Brighter Future? Global Retail Chains and Their Implications for Romania |
| title_full |
Do the Biggest Aisles Serve a Brighter Future? Global Retail Chains and Their Implications for Romania |
| title_fullStr |
Do the Biggest Aisles Serve a Brighter Future? Global Retail Chains and Their Implications for Romania |
| title_full_unstemmed |
Do the Biggest Aisles Serve a Brighter Future? Global Retail Chains and Their Implications for Romania |
| title_sort |
do the biggest aisles serve a brighter future? global retail chains and their implications for romania |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2008/06/9573344/biggest-aisles-serve-brighter-future-global-retail-chains-implications-romania http://hdl.handle.net/10986/6876 |
| _version_ |
1764400903479099392 |