Manufacturing (co)agglomeration in a transition country: Evidence from Russia. (2nd April 2019)

• Record Type: Journal Article
• Authors: Aleksandrova, Ekaterina; Behrens, Kristian; Kuznetsova, Maria
• Is Part Of: Journal of regional science. Volume 60:Number 1(2020)
• Page Start: 88
• Page End: 128
• Publication Date: 2019-04-02
• Subjects: ad valorem transport costs -- agglomeration -- coagglomeration -- input–output linkages -- Russian manufacturing industries; Economics -- Research -- Periodicals; Regional planning -- Periodicals; 330.072
• DOI: 10.1111/jors.12436
• Languages: English
• ISSNs: 0022-4146

Abstract

Abstract: We document the geographic concentration patterns of Russian manufacturing using detailed microgeographic data. About 80% of three‐digit industries are significantly agglomerated, and a similar share of three‐digit industry pairs is significantly coagglomerated. Industry pairs with stronger buyer–supplier links—as measured using Russian input–output tables—tend to be slightly more coagglomerated. This result is robust to instrumental variable estimation using either Canadian or US instruments. Using Canadian ad valorem transport costs as a proxy for transport costs in Russia, we further find that industries with higher transport costs are more dispersed, and industry pairs with higher transport costs are less coagglomerated.