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Effects of Ownership on Agglomeration Economies: Evidence from Ukrainian Firm Level Data

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  • Volodymyr Vakhitov

    ()
    (Kyiv School of Economics, Kyiv Economics Institute)

  • Chris Bollinger

    (University of Kentucky)

Abstract

We use establishment level longitudinal data to estimate agglomeration economies in the Ukraine for machine manufacturing and hi-tech industries. We differentiate state-owned, private-domestic-owned and private-internationally-owned firm types. Our baseline results are comparable to other firm level measures of similar industries and to other research in the former Soviet Union. We find that state owned firms accrue little or no agglomeration benefits, while privately-owned firms are able to take advantage of agglomeration effects. Foreign-owned firms may gain the most from agglomeration. These results suggest that agglomeration economies are typically gained at the management level.

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File URL: http://repec.kse.org.ua/pdf/KSE_dp24.pdf
File Function: May 2010
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Bibliographic Info

Paper provided by Kyiv School of Economics in its series Discussion Papers with number 24.

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Date of creation: May 2010
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Handle: RePEc:kse:dpaper:24

Note: Submitted to the Journal of Urban Economics
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Related research

Keywords: Agglomeration; Localization Economies; Ownership Structure; Transition; Production Function;

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