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The effect of spatial concentration on the business performance in various types of Russian cities

Author

Listed:
  • Andrey Pushkarev

    (Ural Federal University)

  • Oleg Mariev

    (Ural Federal University)

  • Natalia Davidson

    (Ural Federal University)

Abstract

This paper empirically analyzes the effect of spatial concentration of economic activities on enterprise productivity, using Russian firm-level data. Panel data allows us to control for endogeneity biases associated with estimation of agglomeration economies, using fixed effects method. Our results show that Russian firms benefit from the share of similar enterprises in the total city revenue and urbanization, also that these advantages differ by city type. We also find a lack of connection between the level of wages and the revenues of firms for cities within agglomerations (while for other types of cities this effect is significant and positive). We assume that this is primarily due to the role of the agglomeration center, which determines the level of wages in all cities of the agglomeration. The results show that for the optimal development of territories it is necessary to pursue a diversified regional policy.

Suggested Citation

  • Andrey Pushkarev & Oleg Mariev & Natalia Davidson, 2020. "The effect of spatial concentration on the business performance in various types of Russian cities," Proceedings of Economics and Finance Conferences 10913084, International Institute of Social and Economic Sciences.
    • Handle: RePEc:sek:iefpro:10913084
    as

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    File URL: https://iises.net/proceedings/13th-economics-finance-conference-prague/table-of-content/detail?cid=109&iid=012&rid=13084
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    References listed on IDEAS

    as
    1. Martin, Philippe & Mayer, Thierry & Mayneris, Florian, 2011. "Spatial concentration and plant-level productivity in France," Journal of Urban Economics, Elsevier, vol. 69(2), pages 182-195, March.
    2. Mikhailova Tatiana, 2010. "Looking for Multiple Equilibria in Russian Urban System," EERC Working Paper Series 10/08e, EERC Research Network, Russia and CIS.
    3. Beaudry, Catherine & Schiffauerova, Andrea, 2009. "Who's right, Marshall or Jacobs? The localization versus urbanization debate," Research Policy, Elsevier, vol. 38(2), pages 318-337, March.
    4. Stephan Brunow & Uwe Blien, 2015. "Agglomeration effects on labor productivity: An assessment with microdata," REGION, European Regional Science Association, vol. 2, pages 33-53.
    5. Ksenia Gonchar & Tatyana Ratnikova, 2012. "Explaining the Productivity Advantages of Manufacturing Firms in Russian Urban Agglomerations," HSE Working papers WP BRP 22/EC/2012, National Research University Higher School of Economics.
    6. repec:hal:wpspec:info:hdl:2441/c8dmi8nm4pdjkuc9g8mc6ihim is not listed on IDEAS
    7. Roberta Capello & Peter Nijkamp (ed.), 2009. "Handbook of Regional Growth and Development Theories," Books, Edward Elgar Publishing, number 12874.
    8. Natalia Davidson & Oleg Mariev, 2018. "The impact of spatial concentration on enterprise performance: is localisation level optimal in Russia?," International Journal of Economic Policy in Emerging Economies, Inderscience Enterprises Ltd, vol. 11(6), pages 522-540.
    9. Davidson Natalia Borisovna & Mariev Oleg Svyatoslavovitch, 2015. "The impact of spatial concentration on enterprise performance," Экономика региона, CyberLeninka;Федеральное государственное бюджетное учреждение науки «Институт экономики Уральского отделения Российской академии наук», issue 4, pages 95-105.
    10. Martin, Philippe & Mayer, Thierry & Mayneris, Florian, 2011. "Spatial concentration and plant-level productivity in France," Journal of Urban Economics, Elsevier, vol. 69(2), pages 182-195, March.
    11. repec:hal:spmain:info:hdl:2441/c8dmi8nm4pdjkuc9g8mc6ihim is not listed on IDEAS
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    More about this item

    Keywords

    spatial concentration; localization; urbanization; home market potential; Russian cities;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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