The Economic and Employment Impacts Of Shopping Mall Developments On Regional and Peri-Urban Australian Towns

Shopping mall development in regional towns typically comes with the promise of increases in economic activity and local employment. In contemporary Australia they are often welcomed because of this, and the brands, chain stores, glamour and/or cheaper prices they bring. Nevertheless, there is a thesis that that disputes these purported benefits. Advocates and defenders of endogenous dynamism and traditional town precincts argue shopping malls sideline local entrepreneurship and innovation with negative repercussions for local economic activity and employment. This research provides new empirical research into the short and long term effects of shopping malls on Australian regional towns. It does so by testing the claims of both shopping centre advocates and detractors by comparing ABS Workplace data before and after the opening of major malls in three Australia regional towns, and then between nine towns that have had either shopping malls or traditional town centres for over 20 years. The research showed no evidence of increases in economic activity over the short term following the opening of a major shopping mall and evidence of diminished economic activity and employment over the long term.