Evaluation of technical efficiency among entrant and incumbent firms in the Spanish retailing sector: The effects of deregulation from a regional perspective

This study analyzes the efficiency of entrant and incumbent firms in the 1995–2003 period, after a significant shift in the institutional environment of the retail sector occurred with the deregulation of opening hours carried out imposed by decree law 6/2000. It also analyzes the evolution of efficiency in relation to the entrance cohorts and to their geographical localization. The results obtained show that the effects of opening hours by decree law 2000 have perhaps been negative on the level of efficiency of the new firms. The increasing of the inefficiency of the firms is observed through the cohorts with more intensity starting from the year 2000, although in general the tendency of the efficiency is negative at global level. There have not been statistically significant differences between the incoming firms and the incumbent ones for both specialized and non-specialized sectors. Finally, notable intersectoral and intrasectoral differences of efficiency exist among Autonomous Communities (i.e. regions).