Campus Units

Economics

Document Type

Article

Publication Version

Published Version

Publication Date

2020

Journal or Book Title

The Review of Regional Studies

Volume

50

Issue

1

First Page or Article ID Number

110

Last Page

126

Abstract

Using data on the universe of taxable retail sales, retail firm start-ups, and retail firm exits in Iowa from 1992 through 2011, we test whether patterns of retail firm entry and exit are consistent with churning. Consistent with churning, the same factors that increase retail sales in a local market also increase new retail firm entry and either increase or do not affect retail firm exit. Evidence suggests that there is more churning in urban than in rural markets. Similar evidence is found using a sample of national firm entry and exit into local markets. If churning increases productivity growth, then the greater churning rate in urban markets is another source of agglomeration advantages in thick markets.

JEL Classification

L26, P25, R10

Comments

This article is published as Artz, Georgeanne M., Liesl Eathington, Jasmine Francois, Melvin Masinde and Peter F. Orazem. 2020. “Churning in Rural and Urban Retail Markets.” The Review of Regional Studies 50:110-126.

Creative Commons License

Creative Commons Attribution 4.0 International License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Copyright Owner

Southern Regional Science Association

Language

en

File Format

application/pdf

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