A Note on the Geographic Interdependencies of Retail Market Areas |
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Authors: | David Mushinski & Stephen Weiler |
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Institution: | Colorado State University, Fort Collins |
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Abstract: | Central place theory describes an orderly hierarchy of places, with particular retail services developing for lower-ordered places as they reach a threshold. Yet it is likely that nearby areas could serve simultaneously as a source of demand and a source of competing supply for retail stores in a place. This paper contributes to the understanding of local economic development by modeling and estimating the geographic interdependence between a place and its neighboring areas. The simultaneous equation Tobit results suggest that such geographical interdependence exists for most retail industries, with spatial competition on the supply side being particularly important. |
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