TY - JOUR

T1 - Assessment of the Impact of Agglomeration Factors on the Economic Activity: Microeconomic Analysis

AU - Kolomak, Evgeniya A.

AU - Sherubneva, Anastasia I.

N1 - The article has been prepared with the support of the Russian Scientific Foundation, the project No. 23-28-10007“Assessment and forecasting of the spatial development of the Novosibirsk region based on the integration of microdata databases, geoinformation systems and econometric modeling apparatus” and the Government of the Novosibirsk Region (Agreement 0000005406995998235120662/ no. r-54). The authors would like to thank Andrey Kostin, Cand. Sci. (Econ.), Senior Research Associate of IEIE SB RAS for the provided program to work with the SPARK database.

PY - 2023

Y1 - 2023

N2 - While agglomeration effects are an essential element of the economic environment determining the decision-making on the capacity allocation and implementation of infrastructure projects, their impact in the East of Russia is questioned. Development conditions of Novosibirsk oblast can have a contradictory effect on agglomeration forces. The paper aims to obtain quantitative estimates of the impact of agglomeration effects on enterprise performance by analysing the SPARK-Interfax database for 2019. To this end, the visualisation of the spatial distribution of the sample data, average output and profit characteristics was performed. Additionally, the econometric analysis of the influence of agglomeration factors on enterprise performance was conducted. As a result, the microeconomic analysis showed a statistically significant impact of agglomeration effects on the productivity of firms in Novosibirsk oblast. A two-fold increase in the distance to the regional capital leads to a reduction in output and profitability of enterprises by 3.5 %. This finding supports the development and implementation of private and public infrastructure projects. The analysis demonstrated a higher differentiation of profit indicators in cities, as well as a significant drop in performance and efficiency of companies located in the immediate neighbourhood of the regional capital. The revealed patterns characterising the heterogeneous functioning of Novosibirsk economy can be considered by regional and local authorities when making decisions to support and develop business.

AB - While agglomeration effects are an essential element of the economic environment determining the decision-making on the capacity allocation and implementation of infrastructure projects, their impact in the East of Russia is questioned. Development conditions of Novosibirsk oblast can have a contradictory effect on agglomeration forces. The paper aims to obtain quantitative estimates of the impact of agglomeration effects on enterprise performance by analysing the SPARK-Interfax database for 2019. To this end, the visualisation of the spatial distribution of the sample data, average output and profit characteristics was performed. Additionally, the econometric analysis of the influence of agglomeration factors on enterprise performance was conducted. As a result, the microeconomic analysis showed a statistically significant impact of agglomeration effects on the productivity of firms in Novosibirsk oblast. A two-fold increase in the distance to the regional capital leads to a reduction in output and profitability of enterprises by 3.5 %. This finding supports the development and implementation of private and public infrastructure projects. The analysis demonstrated a higher differentiation of profit indicators in cities, as well as a significant drop in performance and efficiency of companies located in the immediate neighbourhood of the regional capital. The revealed patterns characterising the heterogeneous functioning of Novosibirsk economy can be considered by regional and local authorities when making decisions to support and develop business.

KW - Novosibirsk oblast

KW - agglomeration effects

KW - city

KW - empirical analysis

KW - enterprises

KW - municipality

KW - output

KW - profit

KW - region

UR - https://www.scopus.com/record/display.uri?eid=2-s2.0-85175581855&origin=inward&txGid=398fb6802b135bbf80ee3ab7425ef339

UR - https://www.elibrary.ru/item.asp?id=54610788

UR - https://www.mendeley.com/catalogue/8aecffca-4d2c-35d8-bc8b-a2be1156301b/

U2 - 10.17059/ekon.reg.2023-3-12

DO - 10.17059/ekon.reg.2023-3-12

M3 - Article

VL - 19

SP - 766

EP - 781

JO - Экономика региона

JF - Экономика региона

SN - 2072-6414

IS - 3

ER -