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Efficiency convergence processes and effects of regulation in the nonspecialized retail sector in Spain

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Abstract

This work analyzes the effects of the regulation/deregulation processes carried out on the evolution of efficiency in Spanish retail-sector firms in the period 1996–2004. The results suggest that the regulation in this sector has had a considerable influence on firms’ efficiency, in particular, the legislation on the expansion of commercial opening hours after 2000. The results provide clear evidence of a convergence in firms’ efficiency from the initial year considered to superior levels. Moreover, the pattern of convergence differs in function of the region in which the firm operates. The evolution of efficiency given by the means of different groups of regulation intensity levels through the time seems to show clearly in the groups of high and low regulation. It is observed that the group of high regulation is the most efficient. The analysis of the firms as a whole confirms the convergence process. Considering the analysis for subperiods an improvement is observed for all regions in the period 2000 at 2004.

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  1. Facultad de Ciencias Económicas y Empresariales, Universidad de Alcalá, Plaza de la Victoria, 2, 28802, Alcalá de Henares, Madrid, Spain

    Cristina Suárez & Justo de Jorge

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  1. Cristina Suárez
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  2. Justo de Jorge
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Correspondence to Cristina Suárez.

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Suárez, C., de Jorge, J. Efficiency convergence processes and effects of regulation in the nonspecialized retail sector in Spain. Ann Reg Sci 44, 573–597 (2010). https://doi.org/10.1007/s00168-008-0270-7

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