RETHINKING THE ROLE OF THE RETAIL SECTOR IN ECONOMIC-DEVELOPMENT

This article critically reviews the widespread notion that the retail sector is a 'dependent' activity, reliant upon the supposedly more 'pr oductive' sectors of the economy for its survival. Through a critical evaluation of the source of this belief 'economic base' theory the abi lity of locally-oriented enterprises to curb the seepage of income fro m an area is revealed to be as important to economic development as th e external income generating function of outward-oriented industries. Consequently, retailing Is redefined as contributing to economic devel opment not only in its much neglected role as a basic activity which g enerates external income but also in its non-basic locally-oriented fu nction of preventing the leakage of money out of an area. To show this in operation, case studies are presented of a particular local econom y, a large-scale retail development and cross-national shopping.