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Where russians should live: a counterfactual alternative to Soviet location policy

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  • Mikhailova, Tatiana

Abstract

This paper investigates the extent of distortions in Russia's spatial economy that are inherited from the Soviet system. Using Canada as a benchmark for spatial dynamics of economic activity in a market economy, I construct the spatial allocation of population that would result in Russia, given its initial conditions and existing regional endowments, in the absence of Soviet location policy. The results show that Siberia and the Far East were overpopulated by about 14.5 million people by the end of the Soviet period. Overdevelopment of Siberia comes at the expense of the European area of the country. This discrepancy persists, even after adjusting the simulated counterfactual allocation for WWII.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 35938.

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Date of creation: 13 Jan 2012
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Handle: RePEc:pra:mprapa:35938

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Keywords: Russia; USSR; Siberia; economic geography; Soviet location policy;

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  1. Redding, Stephen J & Venables, Anthony J., 2000. "Economic Geography and International Inequality," CEPR Discussion Papers 2568, C.E.P.R. Discussion Papers.
  2. Josep-Maria Arauzo-Carod & Daniel Liviano-Solis & Miguel Manjón-Antolín, 2010. "Empirical Studies In Industrial Location: An Assessment Of Their Methods And Results," Journal of Regional Science, Wiley Blackwell, vol. 50(3), pages 685-711.
  3. repec:hal:cesptp:halshs-00096277 is not listed on IDEAS
  4. Head, Charles Keith & Mayer, Thierry, 2002. "Market Potential and the Location of Japanese Investment in the European Union," CEPR Discussion Papers 3455, C.E.P.R. Discussion Papers.
  5. H. Hanson, Gordon, 2005. "Market potential, increasing returns and geographic concentration," Journal of International Economics, Elsevier, vol. 67(1), pages 1-24, September.
  6. Brakman, Steven & Garretsen, Harry & Schramm, Marc, 2002. "The strategic bombing of German cities during World War II and its impact on city growth," Research Report 03C03, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
  7. Matthieu Crozet, 2004. "Do migrants follow market potentials? An estimation of a new economic geography model," Journal of Economic Geography, Oxford University Press, vol. 4(4), pages 439-458, August.
  8. Yuri Andrienko & Sergei Guriev, 2004. "Determinants of interregional mobility in Russia," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 12(1), pages 1-27, 03.
  9. Carlton, Dennis W, 1983. "The Location and Employment Choices of New Firms: An Econometric Model with Discrete and Continuous Endogenous Variables," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 440-49, August.
  10. Islam, Nazrul, 1995. "Growth Empirics: A Panel Data Approach," The Quarterly Journal of Economics, MIT Press, vol. 110(4), pages 1127-70, November.
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Cited by:
  1. World Bank, 2011. "Russia : Reshaping Economic Geography," World Bank Other Operational Studies 13052, The World Bank.
  2. Coulibaly, Souleymane, 2012. "Rethinking the form and function of cities in post-Soviet countries," Policy Research Working Paper Series 6292, The World Bank.
  3. Albrecht Kauffmann, 2013. "The Russian Urban System in Transition: The View of New Economic Geography," ERSA conference papers ersa13p280, European Regional Science Association.

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