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Entrepreneurial Activity in the Russian Regions: How Spatial and Temporal Effects Determine the Development of Small Business

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  • Zemtsov, S.

    (Russian Presidential Academy of National Economy and Public Administration, Moscow, Russia)

  • Tsareva, Y.

    (Russian Presidential Academy of National Economy and Public Administration, Moscow, Russia)

Abstract

The rate of entrepreneurial activity in Russia is characterized by high variability and regional heterogeneity. Some regions are able to maintain a certain level of entrepreneurship development for a long period, in other regions entrepreneurial activity can vary greatly even for several years. Yet growing regions can be located next to the leaders, while weak regions can be close to each other. This paper estimates temporal and spatial effects, which are often ignored in political decisions. The authors identify a group of regions with the largest agglomerations, favorable economic-geographical position and high rates of entrepreneurial activity for the period 1998-2014: St. Petersburg, Moscow, Kaliningrad, Novosibirsk, Samara, Yaroslavl, Sverdlovsk, Belgorod and Omsk regions. At the same time, interregional clusters with the concentration of leading regions (Novosibirsk and Tomsk oblasts) and regions-outsiders (the North Caucasus) were identified. Based on econometric calculations, taking into account level of regional development, institutional environment and structure of economy, the authors find out that entrepreneurial activity largely depends on its level in the previous two years and is influenced by activity in neighboring regions at a distance of less than 300 km. The results of the analysis demonstrate the need for a geographically differentiated policy in the sphere of smalland medium-sized businesses..

Suggested Citation

  • Zemtsov, S. & Tsareva, Y., 2018. "Entrepreneurial Activity in the Russian Regions: How Spatial and Temporal Effects Determine the Development of Small Business," Journal of the New Economic Association, New Economic Association, vol. 37(1), pages 145-165.
    • Handle: RePEc:nea:journl:y:2018:i:37:p:145-165
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    References listed on IDEAS

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    Cited by:

    1. Kosarev, Vladimir (Косарев, Владимир) & Pavlov, Pavel (Павлов, Павел) & Kaukin, Andrey (Каукин, Андрей), 2019. "Social Capital as a Factor of Economic Growth in the Regions of Russia [Социальный Капитал Как Фактор Экономического Роста Российских Регионов]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 5, pages 124-149, October.
    2. Stepan Zemtsov, 2020. "New technologies, potential unemployment and ‘nescience economy’ during and after the 2020 economic crisis," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(4), pages 723-743, August.
    3. Zemtsov, S., 2020. "Institutions, entrepreneurship, and regional development in Russia," Journal of the New Economic Association, New Economic Association, vol. 46(2), pages 168-180.
    4. Vera Barinova & Sylvie Rochhia & Stepan Zemtsov, 2022. "Attracting highly skilled migrants to the Russian regions," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(1), pages 147-173, February.
    5. Zemtsov, S. & Smelov, Y., 2018. "Factors of Regional Development in Russia: Geography, Human Capital and Regional Policies," Journal of the New Economic Association, New Economic Association, vol. 40(4), pages 84-108.
    6. Stepan Zemtsov & Maxim Kotsemir, 2019. "An assessment of regional innovation system efficiency in Russia: the application of the DEA approach," Scientometrics, Springer;Akadémiai Kiadó, vol. 120(2), pages 375-404, August.

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    More about this item

    Keywords

    path dependence; small and medium enterprises; Russian regions; knowledge spillovers; embeddedness; regional policy;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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