The Korean Journal of Economic Studies
The Effect of Super Supermarket on the Entry and Exit of Retail Stores in Korea
Eunjee Kwon (Sogang University), Hyunbae Chun (Sogang University)Year 2016Vol. 64No. 3
AbstractWe analyze the effects of the entry of Super Supermarket (SSM) on thesubsequent entry and exit of retail stores in the county-level local market.Using establishment-level data from the Census on Establishments, weconstruct a panel dataset for 249 counties from 2005 to 2011. Our result showsthat the entry of an additional SSM leads to an increase of 11 related retailstores (including mom-and-pops, convenient stores, and specialized foodretailers) in the county. Given the declining trend of the total number ofretailers throughout counties in the sample period, our result indicates that theSSM opening partly mitigates the declining trend in the county entered bySSM. This paper improves our understanding of the underlying micromechanismof the entry effect of SSM on structural changes in the local retailindustry.