2017, №3

Theoretical Aspects of Modeling the Mechanism of Economic Agglomeration under Interregional Mobility of Production Factors


Studies in the field of the economic development of territories in modern crisis conditions are particularly relevant. One of the approaches to the spatial development of the regional economy on the basis of integration forces is the agglomeration approach. The purpose of the study is to model the mechanism of economic agglomeration in the conditions of inter-regional mobility of production factors. The article explores the conditions for the formation of mobility and balance in the interregional economic space and simulates the interrelations in the decision-making of the main market agents: firms and households. The authors revealed a direct analytical link between the directions of labor migration and efficiency wage. We give recommendations on the assessment of the agglomeration potential of two regions with two sectors of economics: innovative and traditional ones. As a result of the study, the authors conclude that the efforts of the employees in the proportion to their efficiency wage are increased in agglomerations, which leads to the appearance of agglomeration synergetic effect in the development of the region.

PDF full

Vladimir A. Borodin  – Dr. Sci. (Econ.), Professor, Altai Research Institute of Mechanical Engineering Technology (Barnaul, Russian Federation; e-mail: matschin@yandex.ru).

Konstantin Al. Machin – Cand. Sci. (Econ.),  Polzunov Altai State Technical University (Barnaul, Russian Federation;  e-mail: matschin@yandex.ru).