Shopping externalities and retail concentration: Evidence from dutch shopping streets
Why do shops cluster in shopping streets? We argue that retail firms benefit from shopping externalities. We identify these externalities for the main Dutch shopping streets by estimating the effect of footfall – the number of pedestrians that pass by – and the number of shops in the vicinity on store owners’ rental income. We address endogeneity issues by exploiting spatial variation within shopping streets combined with historic long-lagged instruments. Our estimates imply an elasticity of rental income with respect to footfall as well as number of shops in the vicinity of (at least) 0.25. We show that these shopping externalities are unlikely to be internalised. It follows that substantial subsidies to shop owners are welfare improving, seemingly justifying current policies. Finally, we find limited evidence for heterogeneity between retail firms located in shopping streets in their willingness to pay for shopping externalities.
As other worldwide sourcing industries the retail sector is also prone to various forms of corruption. In particular large retail-chains doing business in developing countries are often faced with corrupt bureaucracy and struggle with dubious administrative processes. On the other hand the purchasing divisions of large retailers decide upon million dollar deals with their suppliers which may tempt manufacturers to pay bribes for winning the deal. While such forms of corruption may be found also for other businesses there are other practices which may be recognised as corruption which are typical in the retail sector. One of the most controversial discussions concerns the practice of so-called slotting fees which are charged to manufacturers as a contribution to the handling costs of the retailer. Since such fees are negotiated in secrecy and not broken down by categories of expenditure they are often seen as a bribery-like payment demanded for getting contracts or staying in business. In the following chapter we will analyze these practices from an economic perspective. We will provide some empirical findings on how such payments are assessed in practice and conclude with some ethical considerations concerning the practice and the effects of slotting fees.
This paper considers current contradictions in state–business relations in Russia. On one hand, the Russian political elite needs economic growth to keep social stability in the country and to limit mass protesting in big cities. Economic growth is impossible without investment, which explains Russian leaders’ increased interest in improving Russia’s business climate. On the other hand, influential interest groups (represented first of all by security and law enforcement agencies) try to expand their control on rent sources in the economy. These groups of interests could strengthen their positions due to fear of political protests. This strong conflict among different groups in the Russian elite creates additional uncertainty for investors and the business community, and can lead to economic recession independent of the level of oil prices and dynamics of global markets. Reversing these negative trends in economic development will be possible only with collective actions of different economic and political actors (including technocrats in federal and regional governments, representatives of large and successful middle-sized business and topmanagers of public sector organizations) in the search for pragmatic solutions to the challenges faced by Russian economy and society.
The legal concept and legislative regulation of the principle of prohibition of discrimination is beeng analysed . We also discuss changes of Russian legislation aimed to strengthen protection against discrimination during applying for jobs and disseminating of information with discriminatory requirement concerning vacancies. The article analyses the effectiveness of these provisions .
In 2012, gross retail sales volumes finally reached and exceeded the pre-crisis period of 2008. The industry is fully recovered from the recession, and majors set new milestones for business growth. Therefore the important task for logisticians in retail companies is to analyze main stages and projections for industry development, strengths and weaknesses of chosen market strategies, its impact to decision making process within distribution network designing. The article presents the periodization of the development of retail trade in Russia, market performance and description of market leaders in the industry at the current stage, key market trends and major strategic concerns. All these aspects are considered by the author in linkage with logistics management, structure and configuration of distribution network for retail companies.
Smoking is a problem, bringing signifi cant social and economic costs to Russiansociety. However, ratifi cation of the World health organization Framework conventionon tobacco control makes it possible to improve Russian legislation accordingto the international standards. So, I describe some measures that should be taken bythe Russian authorities in the nearest future, and I examine their effi ciency. By studyingthe international evidence I analyze the impact of the smoke-free areas, advertisementand sponsorship bans, tax increases, etc. on the prevalence of smoking, cigaretteconsumption and some other indicators. I also investigate the obstacles confrontingthe Russian authorities when they introduce new policy measures and the public attitudetowards these measures. I conclude that there is a number of easy-to-implementanti-smoking activities that need no fi nancial resources but only a political will.
One of the most important indicators of company's success is the increase of its value. The article investigates traditional methods of company's value assessment and the evidence that the application of these methods is incorrect in the new stage of economy. So it is necessary to create a new method of valuation based on the new main sources of company's success that is its intellectual capital.