The impact of spatial concentration on enterprise performance
The objective of this paper is to reveal the impact of spatial concentration of business in the Russian cities on enterprise productivity. The hypotheses are the following: urbanization level and home market potential positively affect enterprise performance; localization economies are positive an...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Russian Academy of Sciences, Institute of Economics of the Ural Branch
2015-12-01
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| Series: | Экономика региона |
| Subjects: | |
| Online Access: | http://www.economyofregion.com/archive/2015/57/2712/pdf/ |
| _version_ | 1797766101815263232 |
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| author | Natalia Borisovna Davidson Oleg Svyatoslavovitch Mariev |
| author_facet | Natalia Borisovna Davidson Oleg Svyatoslavovitch Mariev |
| author_sort | Natalia Borisovna Davidson |
| collection | DOAJ |
| description | The objective of this paper is to reveal the impact of spatial concentration of business in the Russian cities
on enterprise productivity. The hypotheses are the following: urbanization level and home market potential
positively affect enterprise performance; localization economies are positive and start decreasing after
some point due to congestion and excessive competition; regional transport infrastructure, business climate
and human capital positively affect enterprise performance. We use firm level data augmented with city and
regional data. Fixed effects are applied in order to deal with endogeneity. Agglomeration economies are considered
in the light of opportunities for knowledge spillovers, input sharing and labor market pooling. Our results
confirm that agglomeration economies and home market potential are important for the enterprise performance.
We find positive urbanization and diversity economies, while localization economies have an inverted
U shape. Results can be used to improve regional policy. For instance, significance of home market potential
emphasizes the importance of transport infrastructure. Significance of agglomeration effects implies
that if a sufficiently large number of firms work in a city, performance of each firm improves. |
| first_indexed | 2024-03-12T20:19:29Z |
| format | Article |
| id | doaj.art-77cabb7409dd4de595a001ccc0bdace4 |
| institution | Directory Open Access Journal |
| issn | 2072-6414 2411-1406 |
| language | English |
| last_indexed | 2024-03-12T20:19:29Z |
| publishDate | 2015-12-01 |
| publisher | Russian Academy of Sciences, Institute of Economics of the Ural Branch |
| record_format | Article |
| series | Экономика региона |
| spelling | doaj.art-77cabb7409dd4de595a001ccc0bdace42023-08-02T01:01:20ZengRussian Academy of Sciences, Institute of Economics of the Ural BranchЭкономика региона2072-64142411-14062015-12-01201549510510.17059/2015-4-8The impact of spatial concentration on enterprise performance Natalia Borisovna Davidson0Oleg Svyatoslavovitch Mariev1 Ural Federal University named after the first President of Russia B.N. Yeltsin Ural Federal University named after the first President of Russia B.N. YeltsinThe objective of this paper is to reveal the impact of spatial concentration of business in the Russian cities on enterprise productivity. The hypotheses are the following: urbanization level and home market potential positively affect enterprise performance; localization economies are positive and start decreasing after some point due to congestion and excessive competition; regional transport infrastructure, business climate and human capital positively affect enterprise performance. We use firm level data augmented with city and regional data. Fixed effects are applied in order to deal with endogeneity. Agglomeration economies are considered in the light of opportunities for knowledge spillovers, input sharing and labor market pooling. Our results confirm that agglomeration economies and home market potential are important for the enterprise performance. We find positive urbanization and diversity economies, while localization economies have an inverted U shape. Results can be used to improve regional policy. For instance, significance of home market potential emphasizes the importance of transport infrastructure. Significance of agglomeration effects implies that if a sufficiently large number of firms work in a city, performance of each firm improves.http://www.economyofregion.com/archive/2015/57/2712/pdf/agglomeration economieslocalizationurbanizationdiversityhome market potentialenterprise performanceRussia |
| spellingShingle | Natalia Borisovna Davidson Oleg Svyatoslavovitch Mariev The impact of spatial concentration on enterprise performance Экономика региона agglomeration economies localization urbanization diversity home market potential enterprise performance Russia |
| title | The impact of spatial concentration on enterprise performance |
| title_full | The impact of spatial concentration on enterprise performance |
| title_fullStr | The impact of spatial concentration on enterprise performance |
| title_full_unstemmed | The impact of spatial concentration on enterprise performance |
| title_short | The impact of spatial concentration on enterprise performance |
| title_sort | impact of spatial concentration on enterprise performance |
| topic | agglomeration economies localization urbanization diversity home market potential enterprise performance Russia |
| url | http://www.economyofregion.com/archive/2015/57/2712/pdf/ |
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