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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.

Suggested Citation

  • Mikhailova, Tatiana, 2012. "Where russians should live: a counterfactual alternative to Soviet location policy," MPRA Paper 35938, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:35938
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    File URL: https://mpra.ub.uni-muenchen.de/36157/1/MPRA_paper_36157.pdf
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    References listed on IDEAS

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    1. 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.
    2. H. Hanson, Gordon, 2005. "Market potential, increasing returns and geographic concentration," Journal of International Economics, Elsevier, vol. 67(1), pages 1-24, September.
    3. Keith Head & Thierry Mayer, 2004. "Market Potential and the Location of Japanese Investment in the European Union," The Review of Economics and Statistics, MIT Press, vol. 86(4), pages 959-972, November.
    4. Steven Brakman & Harry Garretsen & Marc Schramm, 2004. "The strategic bombing of German cities during World War II and its impact on city growth," Journal of Economic Geography, Oxford University Press, vol. 4(2), pages 201-218, April.
    5. 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.
    6. Redding, Stephen & Venables, Anthony J., 2004. "Economic geography and international inequality," Journal of International Economics, Elsevier, vol. 62(1), pages 53-82, January.
    7. 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 440-449, 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, March.
    9. Nazrul Islam, 1995. "Growth Empirics: A Panel Data Approach," The Quarterly Journal of Economics, Oxford University Press, vol. 110(4), pages 1127-1170.
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    Citations

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    Cited by:

    1. Albrecht Kauffmann, 2013. "The Russian Urban System in Transition: The View of New Economic Geography," ERSA conference papers ersa13p280, European Regional Science Association.
    2. Riccardo Crescenzi & Alexander Jaax, 2015. "Innovation in Russia: the territorial dimension," Papers in Evolutionary Economic Geography (PEEG) 1509, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Apr 2015.
    3. World Bank, 2011. "Russia : Reshaping Economic Geography," World Bank Other Operational Studies 13052, The World Bank.
    4. Coulibaly, Souleymane, 2012. "Rethinking the form and function of cities in post-Soviet countries," Policy Research Working Paper Series 6292, The World Bank.

    More about this item

    Keywords

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

    JEL classification:

    • P5 - Economic Systems - - Comparative Economic Systems
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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