Retail Globalization and Household Welfare: Evidence from Mexico
Top Cited Papers
- 1 February 2018
- journal article
- research article
- Published by University of Chicago Press in Journal of Political Economy
- Vol. 126 (1), 1-73
- https://doi.org/10.1086/695476
Abstract
The arrival of global retail chains in developing countries is causing a radical transformation in the way households source their consumption. This paper draws on a rich collection of Mexican microdata to estimate the effect of foreign supermarket entry on household welfare and decomposes this effect into six channels. We find that foreign entry causes large welfare gains for the average household predominantly driven by a reduction in the cost of livingboth through price reductions at domestic stores and through the direct consumer gains from foreign stores. These gains are, on average, positive for all income groups but are regressive.Keywords
Other Versions
This publication has 28 references indexed in Scilit:
- New Trade Models, Same Old Gains?American Economic Review, 2012
- The Diffusion of Wal-Mart and Economies of DensityEconometrica, 2011
- Factor Immobility and Regional Impacts of Trade Liberalization: Evidence on Poverty from IndiaAmerican Economic Journal: Applied Economics, 2010
- The Role of Prices in Measuring the Poor's Living StandardsJournal of Economic Perspectives, 2009
- Openness and Industrial Response in a Wal‐Mart World: A Case Study of Mexican Soaps, Detergents and Surfactant ProducersThe World Economy, 2008
- The effects of Wal-Mart on local labor marketsJournal of Urban Economics, 2008
- The supermarket revolution in developing countries: tidal wave or tough competitive struggle?Journal of Economic Geography, 2007
- Globalization and the Gains From VarietyThe Quarterly Journal of Economics, 2006
- Selling a cheaper mousetrap: Wal-Mart's effect on retail pricesJournal of Urban Economics, 2005
- The Competitive Effects of a New Product Introduction: A Case StudyJournal of Industrial Economics, 2002