Article
Churning in Rural and Urban Retail Markets
The Review of Regional Studies
Document Type
Article
Publication Version
Published Version
Publication Date
1-1-2020
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.
Creative Commons License
Creative Commons Attribution 4.0 International
Copyright Owner
Southern Regional Science Association
Copyright Date
2020
Language
en
File Format
application/pdf
Citation Information
Georgeanne M. Artz, Liesl Eathington, Jasmine Francois, Melvin Masinde, et al.. "Churning in Rural and Urban Retail Markets" The Review of Regional Studies Vol. 50 Iss. 1 (2020) p. 110 - 126 Available at: http://works.bepress.com/georgeanne-artz/51/
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.