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Regional Reallocation of Russian Industry in Transition

  • Rytchkov Oleg

    ()

  • Shevyakhova Elizaveta

    ()

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    In this paper we suggest to use a 'new economic geography' paradigm for explanation of regional reallocation of industrial employment in Russia in 1985-1999. We construct a new economic geography" type model adjusted to specific features of Russian economy. This model gives a counterfactual distribution of industry across regions and allows us to construct a theoretical factor NEGF which is supposed to predict real changes in allocation of industrial employment. Our analysis of empirical data shows that NEGF indeed has a predictive power and this result is valid for a sufficiently wide range of model specifications.

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    Paper provided by EERC Research Network, Russia and CIS in its series EERC Working Paper Series with number 04-10e.

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    Length: 51 pages
    Date of creation: 13 Jul 2004
    Date of revision:
    Handle: RePEc:eer:wpalle:04-10e
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