Mariev, O. S. & Pushkarev, A. A. (2019). Effect of Spatial Concentration on Enterprise Productivity in Various Types of Russian Cities. Zhurnal Economicheskoj Teorii [Russian Journal of Economic Theory], 16(1), 175-180
This paper presents an empirical analysis of the effect of spatial concentration of economic activities on enterprise productivity, using Russian firm-level data. With the help of fixed effects method, panel data allows us to mitigate endogeneity biases associated with the estimation of agglomeration economies. Our studies indicate that Russian firms benefit from the share of similar enterprises in total city revenue and urbanization; moreover, these advantages differ by city type. We also find a lack of connection between the level of wages and the revenues of firms in 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 the cities of agglomeration. The results show that it is necessary to pursue a diversified regional policy to achieve the optimal development of territories.