E-commerce, Transportation, and Economic Geography

This paper explores possible ways in which growth in Internet retailing (e-retailing) may affect the spatial distribution of economic activities. After a brief overview of e-retailing, a categorization of possible spatial impacts is introduced. These include impacts on the retail industry, such as substitution of e-retail for brick-and-mortar retail, impacts on transportation, such as substitution of freight transportation for personal transportation in goods delivery, and pervasive impacts that affect the whole economy. The latter category includes uniform delivered pricing, spatial leveling of accessibility, and marketing strategies that target individuals rather than regions. The question of whether e-retailing and brick-and-mortar retailing are truly substitutes is taken up in the next section, along with potential implications of multi-channel retailing. The final section of the paper defines some critical research directions. Copyright 2003 Gatton College of Business and Economics, University of Kentucky..