2012/08/28 by Alessandro Bonanno, Stephan J. Goetz · 1 voice
Economics, Econometrics and Finance · #Economic theories and models #Economics of Agriculture and Food Markets #Regional Economics and Spatial Analysis
paper · doi:10.1177/0891242412456738
openalex publication_date 2012/08/28 · openalex created_date 2025/10/10 · openalex updated_date 2026/06/26
This article reviews the literature that evaluates WalMart’s impacts on local economies. The authors first describe the methods used to account for potential reverse causality of WalMart’s store location decisions, and then they discuss the literature assessing the company’s effect on three aspects of community life: (a) retail (and nonretail) businesses, across large- and small-sized stores and in different business environments; (b) retail workers, wages, and types of jobs; and (c) producer and consumer welfare through the company’s price-decreasing effect and other potential indirect effects. Last, articles focusing on a broad spectrum of local conditions that could be affected by the company, including poverty rates, social capital, food insecurity, policy effectiveness, and obesity are reviewed. For each dimension, evidence is found of both positive and negative effects, suggesting that we are still far from truly understanding the net effect of WalMart on local economies, let alone the overall consequences in the long run.