Fig. 5

Effects on neighboring municipalities by definitions of neighboring municipalities. Figure indicates the coefficients of the cross-term between the time dummy and the neighboring municipalities of the treatment group’ dummy by definitions of neighboring municipalities. Outcomes are log of sales in general retail trade when this paper compares neighboring municipalities of the treatment group versus neighboring municipalities of the control group. 10, 12.5, and 15% indicate that the term of “neighbor” is used if more than 10, 12.5, and 15% of workers who live in a city c commute to any targeted municipalities in 2005. Data from the census of commerce in 2002, 2007, and 2012 (to be more precise, the economic census in 2012. It covers the census of commerce)