Regulation and UK Retailing Productivity: Evidence from Microdata
- J. Haskel and R. Sadun (2012). Economica, 425-448
- Abstract: We explore the effects of planning regulation on the UK retail sector between 1997 and 2003 using microdata from the UK census. We document a shift to smaller shops following a 1996 regulatory change that increased the costs of opening large stores. Our analysis suggests that total factor productivity (TFP) of multi-store retail chains fell after the introduction of the reform due to the reduction in store size. Overall, the reduction in store size was associated with TFP of retail chains falling by 0.4% per annum, or 40% of the post-1995 slowdown in UK retail TFP growth. 2012 The London School of Economics and Political Science.
- Theme: Policy/support programmes
- Keywords: economic growth, firm size, industrial regulation, microenterprise, reform process, regulatory framework, retailing, total factor productivity, United Kingdom
- Reference type: Journal Article
- Geographic location: United Kingdom, Europe, Global North