Abstract:
The aim of our research is to reveal features of the spatial concentration influence on enterprise productivity. The research used data on companies, as well as the cities and regions of Russia. The results show that in cities with greater business activity the company is relatively more productive. Specializing in private sector also has a positive effect on the enterprise performance, but positive effect gradually decreases with an increase in the volume of output in the industry. The home market potential has a positive effect on the performance of firms that emphasizes the importance of infrastructure development and communications for productivity growth. It confirmed the hypothesis about the positive impact of human capital on the performance of enterprises. Different effects among cities have been identified. So, in the cities belonging to the agglomerations, the impact of human capital and the concentration of business activity on productivity is stronger than in other cities. The techniques discussed in this papercan be used in the development of regional policies and the evaluation of its results.
