Examining the Effectiveness of Government Policy for Retail Districts: Evidence from Korea

Woohyoung Kim,Hyun Kim,Alan Hallsworth

doi:10.3390/su10051558

Abstract

This paper seeks to measure the effects of policy on the self-employed conducting business in traditional retail districts. To verify policy we performed a practical analysis utilizing the multinomial logit model on the relationship between consumption behaviors and the attendant satisfaction level of consumers in the urban commercial districts. We first identified traditional retail districts that had received government policy support and those that had not. We then visited these districts to survey the satisfaction levels of customers. In total, 400 people were surveyed for this study. The results show that political support for the self-employed who conduct business inside the traditional retail districts has a partial effect. Especially, for the policy beneficiaries, the customer’s satisfaction level in specific political support has a very important meaning. The study analyzed the factors necessary for the continuous growth of traditional retail districts, considering consumption behaviors and shop selection attributes. We argue that government support can help sustain regional commercial districts and the individual self-employed through consumer behavior and the magnification of satisfaction levels.

Highlights

We first raise some key issues before discussing the effect of government support on sustainable growth of self-employed people: the core issue in this study
How much support might self-employed retailers need? why should governments support the self-employed at all? Do those self-employed who do not receive government support not suffer discrimination? To answer these basic questions it is necessary to analyze old urban traditional retail districts: some in which the self-employed who receive government support and others where they do not. This analysis will measure the effect of government support on actual consumers and future policy supplementations can refer to this analysis for guidance
This study has empirically examined the effect of government support on the prospects for self-employed retailers in traditional districts

Summary

Introduction

We first raise some key issues before discussing the effect of government support on sustainable growth of self-employed people: the core issue in this study. To answer these basic questions it is necessary to analyze old urban traditional retail districts: some in which the self-employed who receive government support and others where they do not. This analysis will measure the effect of government support on actual consumers and future policy supplementations can refer to this analysis for guidance. This study analyzes the changes in the consumer purchase patterns that have brought macroscopic and microscopic changes in the global distribution industries It will review the limitations of sustainable growth due to the decline in the competitive power of the self-employed who do not adapt themselves well to ongoing changes in the distribution industry. It will examine whether the policy efforts of the government to help revive the self-employed have any lasting effects

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Conclusion