The impact of spatial concentration on enterprise performance1 / Davidson N.B., Mariev O.S. // Economy of Region. - 2015. - V. , l. 4. - P. 95-105.

ISSN:
20726414
Type:
Article
Abstract:
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.
Author keywords:
Agglomeration economies; Diversity; Enterprise performance; Home market potential; Localization; Russia; Urbanization
Index keywords:
нет данных
DOI:
10.17059/2015-4-8
Смотреть в Scopus:
https://www.scopus.com/inward/record.uri?eid=2-s2.0-84979964192&doi=10.17059%2f2015-4-8&partnerID=40&md5=806b9e284d42b0495cbcdd29b7ea424d
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Link https://www.scopus.com/inward/record.uri?eid=2-s2.0-84979964192&doi=10.17059%2f2015-4-8&partnerID=40&md5=806b9e284d42b0495cbcdd29b7ea424d
Affiliations Ural Federal University, Russian Federation
Author Keywords Agglomeration economies; Diversity; Enterprise performance; Home market potential; Localization; Russia; Urbanization
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Publisher Institute of Economics, Ural Branch of the Russian Academy of Sciences
Language of Original Document English
Abbreviated Source Title Econ. Reg.
Source Scopus