Working Paper No. 332: Are New Shopping Centers Drivers of Development in Large Metropolitan Suburbs? The Interplay of Agglomeration and Competition Forces

PublikationWorking paper

agglomeration effects, attenuation of effects, competition, Firm performance, Martin Korpi, Oana Mihaescu, Özge Öner, retail location, Shopping centers

Working Paper No 332

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Sammanfattning

We investigate to which extent shopping centers drive local economic development by studying how distance to newly established shopping centers affects the performance of incumbent firms, located in the suburbs of the three Swedish major metropolitan areas Stockholm, Gothenburg, and Malmö, 2000-2016. We use a regression setup with around 27,000 firm-year observations and explore the possible heterogeneity imposed on the results from two main elements of spatial economics theory: the size of the new retail area and the distance from the new retail area to the analyzed incumbents. We observe a clear difference in the direction of the effects of large versus small shopping centers. While competition forces are much stronger in the case of the establishment of large shopping centers, yielding a negative 5% on incumbent firm revenue and negative 3% on firm employment, results indicate the opposite pattern for smaller shopping centers; with firm revenue and firm employment increasing 4% and 3%, respectively. Moreover, we also observe that both agglomeration and competition effects attenuate sharply with distance from the new entrant, confirming one of the central premises of retail location theory. Finally, we observe that the geographical scope of the effects is much wider in the case of larger shopping centers, with estimates becoming statistically insignificant at about 9-10 km from the new entry, as compared to 3-4 km in the case of smaller retail centers.

Mihaescu, O., Korpi, M. & Öner, Ö. (2020). Are New Shopping Centers Drivers of Development in Large Metropolitan Suburbs? The Interplay of Agglomeration and Competition Forces. Ratio Working Paper Nr 332. Stockholm: Ratio.

Liknande innehåll

Absolute income mobility and the effect of parent generation inequality: An extended decomposition approach

Artikel (med peer review)Publikation

Liss, E., Korpi, M., & Wennberg, K.

Publiceringsår

2023

Publicerat i

European Economic Review, 152, 104359.

Sammanfattning

We use full-population data to study trends in intergenerational absolute income mobility, measured as the ratio of children earning more than their parents, for 11 Swedish cohorts born 1972–1983. Absolute mobility during this period increases from 72% to 84% for men and from 76% to 86% for women—higher figures than in most other countries studied. To explain these results, we outline a novel decomposition strategy that accounts for cohort variation in parent-generation income inequality. All else equal, if income inequality is higher in the parent generation, more economic growth is required to achieve any given level of absolute mobility. We discuss implications for comparative research in intergenerational income mobility.

Ratio Working Paper No. 353: From free competition to fair competition on the European internal market

Working paperPublikation

Karlson, N., Herold, T. & Dalbard, K.

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Publiceringsår

2022

Publicerat i

Ratio Working Paper

Sammanfattning

This paper investigates whether an increased use and reinterpretation of what has been called “fair competition” has occurred at the expense of “free competition” among the central institutions of the European Union. We are also interested in assessing how frequently these terms have been used by the various EU institutions over time.

We have empirically examined this through a quantitative survey of more than 12,000 public documents, out of totally 242 000 documents containing 630 million words, in the EUR-lex database over the last 50 years, from 1970 to 2020. Our conclusion is that the emphasis of the common policies in the EU is likely to have shifted from free competition and an open market economy to “fair competition” in the sense of a level playing field, in official EU documents, such as treaties, EU acts institutions, preparatory documents relating to EU directives and recommendations including motions and resolutions, case law and more.

The European Commission has been a driving force in this development, followed closely by the European Parliament and subsequently by the Council of Ministers. This change entails a risk that the regulation of the European internal market has shifted so that the dynamics of the internal market and thus the EU’s competitiveness will weaken. The change also entails a centralization of decisions at EU level at the expense of the Member States.

Ratio Working Paper No. 342: Business Angels and Firm Performance: First Evidence from Population Data

Working paperPublikation

Andersson, F. & Lodefalk, M.

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Publiceringsår

2020

Publicerat i

Ratio Working Paper

Sammanfattning

Business angels dominate early stage investment in firms but research on the effects of their investment is scarce and limited by sample selection. We therefore propose an algorithm for identifying business angel investment in total population data. We apply the algorithm to study the effects of business angels on firm performance, using detailed and longitudinal total population data for individuals and firms in Sweden. Employing these data and a quasi-experimental estimator, we find that business angels engage in firms that already perform above par but that there also is a positive effect on subsequent growth, comparing with control firms. Firms with business angel investment perform better in terms of sales and employment growth and likelihood of becoming a high-growth firm. Contrary to previous research, we cannot find any impact on firm survival, however. Overall, our results underline the need to address sample selection issues both in identifying business angels and in evaluating their effects on firm performance.

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