Importing retailers dominate, driving out small shops and reshaping local markets.
The article explores how international trade affects retail businesses and markets. By studying data from Denmark, the researchers found that retailers who import goods are bigger, more profitable, and more likely to have multiple stores compared to those who source locally. Importing also leads to better performance for these retailers. Additionally, small retailers are more likely to close down when faced with competition from imported goods, leading to more concentrated local markets. Overall, the study shows that international trade can bring benefits to retail businesses and impact the structure of retail markets.