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RIEB, Kobe University Site Map Access 日本語 Home Research & Education Publications RIEB Discussion Paper Series (English) RIEB Discussion Paper Series No.2011-03 RIEB Discussion Paper Series No.2011-03 Title Sources of Global Heterogeneity in Retail Spending Abstract Economies worldwide vary greatly in terms of how much their consumers spend on various types of retail activities. The purpose of this paper is to examine how the regulatory characteristics as well as the natures and strategies of businesses are related to retail spending. We employed random effect time series cross sectional (TSCS) models linear in parameters for forty-eight economies using annual data for the 1999-2008 period. The results provided strong support that economic freedom, foreign direct investment (FDI) inflow and concentration of retail stores in an economy positively affect retail spending. We also found that tax and social security contributions as a proportion of the GDP is positively related to per capita grocery retail spending. A lack of data for a large number of economies, especially less developed ones potentially provides a limitation of this paper. Keywords Retail spending, FDI, economic freedom, time series cross sectional (TSCS) models Inquiries Nir KSHETRI The University of North Carolina at Greensboro, USA Ralf BEBENROTH Research Institute for Economics and Business Administration Kobe University Rokkodai-cho, Nada-ku, Kobe 657-8501 Japan Phone: +81-78-803-7036 FAX: +81-78-803-7059 About RIEB Faculty Seminars at RIEB Research & Education Sections Kobe University Site Policy Site Map Access Contact Us Copyright©1996-2018 Research Institute for Economics and Business Administration, Kobe University. All Rights Reserved.

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