전통시장 활성화에 제도적 규제 및 지원이 미치는 파급효과 예측 시뮬레이션에 관한 실증연구
An empirical study on simulating the effects of institutional regulation and incentive provision on revitalizing traditional markets
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Since the opening of the domestic retail market, the aggressive locations of enterprise market or major super-store has encroached upon the local market areas of the small petty shops. This has accelerated the business closures of petty shops and consequently, threatened the livelihood of the small local shopkeepers, causing a socioeconomic polarization in a relevant locality. To improve this conflicted local market condition, designated were “Traditional Commerce Protection Zone” for regulating aggressive openings of big box stores and “Marketing Area Revitalization System” for providing institutional incentives to petty local stores so that the local distribution market environment can be symbiotic among various types and sizes of merchants. The designation was an institutional effort to prevent the deterioration of local petty market and to promote the local economy. The objective of this study is to simulate the in institutional effects of the regulation and the provision of incentives on changes of the market shares by retail types (big-box store, SSM(Super-Super Market), traditional market and petty shop). To this end, a gravity-model based simulation tool was built such that the spatial component(the distances to shops from customers as a spatial component) and the non-spatial component(the properties of shops and shoppers) are respectively incorporated into the gravity model. It was assumed that the farther the distance of a new location of big market from the existing stores is, the bigger the market share of traditional markets and petty shops are expected to be. In addition, the more the incentives are provided for traditional markets and small stores, the more frequent the customer’s visits to the non-enterprise types of retailers and the consequent sale increase would be. The simulations results indicate that the provision of incentives improves better the local market condition than the regulating the location of new retailers. Although the results make sense restricted to the City of Chungju, the study area of this study, the simulation framework in this study is expected to be further utilized for other regions under the condition that the empirical estimations of both spatial and non-spatial components of the gravity model is performed.
Abstract
Since the opening of the domestic retail market, the aggressive locations of enterprise market or major super-store has encroached upon the local market areas of the small petty shops. This has accelerated the business closures of petty shops and consequently, threatened the livelihood of the small local shopkeepers, causing a socioeconomic polarization in a relevant locality. To improve this conflicted local market condition, designated were “Traditional Commerce Protection Zone” for regulating aggressive openings of big box stores and “Marketing Area Revitalization System” for providing institutional incentives to petty local stores so that the local distribution market environment can be symbiotic among various types and sizes of merchants. The designation was an institutional effort to prevent the deterioration of local petty market and to promote the local economy. The objective of this study is to simulate the in institutional effects of the regulation and the provision of incentives on changes of the market shares by retail types (big-box store, SSM(Super-Super Market), traditional market and petty shop). To this end, a gravity-model based simulation tool was built such that the spatial component(the distances to shops from customers as a spatial component) and the non-spatial component(the properties of shops and shoppers) are respectively incorporated into the gravity model. It was assumed that the farther the distance of a new location of big market from the existing stores is, the bigger the market share of traditional markets and petty shops are expected to be. In addition, the more the incentives are provided for traditional markets and small stores, the more frequent the customer’s visits to the non-enterprise types of retailers and the consequent sale increase would be. The simulations results indicate that the provision of incentives improves better the local market condition than the regulating the location of new retailers. Although the results make sense restricted to the City of Chungju, the study area of this study, the simulation framework in this study is expected to be further utilized for other regions under the condition that the empirical estimations of both spatial and non-spatial components of the gravity model is performed.
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