Tuesday, November 24, 2015
Adolescence and the Path to Maturity in Global Retail
Bart J. Bronnenberg (Tilburg) and Paul B. Ellickson (University of Rochester) explain Adolescence and the Path to Maturity in Global Retail.
ABSTRACT: Distributing goods from producers to consumers constitutes a large fraction of overall economic activity. Using the United Nations National Accounts database, the distributive trades—retailing, wholesaling, and transportation—account for a constant 20–21 percent of global GDP going back at least as far as 1970, amounting to 1.3 times the GDP share of manufacturing in 2013. The share does not vary much across continents. The size of the distributive trades alone suggests that productivity growth in retailing could have a substantial impact on consumer welfare.