Model for Assessing the Benefits of Living in Russian Cities
DOI:
https://doi.org/10.17059/ekon.reg.2023-4-4Keywords:
city, economy, agglomeration, placement efficiency, cost per square meter of real estate, population, housing affordability coefficient, housing affordability index, urban functions, high-performance jobsAbstract
At the present stage of globalisation, the phenomenon of urban agglomerations and the need to create conditions to fully realise agglomeration effects require methodological approaches and models for assessing the factors of location efficiency in Russian cities. The study aims to assess the aggregate function of urban production of the effectiveness of benefits of living by using the indicator “the cost per square meter of real estate in the primary market”. The presented author’s methodology for assessing the aggregate function of urban production of average location benefits differs from traditional approaches: it includes an analysis of conditions for the interaction of independent variables and dummy cities, as well as a model with dummy variables. Cities with a population of more than 100 thousand people (megacities, big and large cities) of the Central and Volga Federal Districts in the period 2001-2020 were examined. The testing of the proposed method on the entire sample of cities showed that an increase in high urban functions promotes economic growth of a city and enhances its attractiveness, with a pronounced agglomeration effect. Analysis of properties of large cities in the Central Federal District revealed the inverted U-shaped relationship between location efficiency and the city size, reflecting the disadvantage of the excessively large size. The simulation results demonstrate that high urban functions also play an important role in explaining increasing returns. In order to turn the risk of diminishing returns into the agglomeration economy, it is necessary to invest in high-performance workplaces, research and development. The findings can be used to create and implement policies for the development of urban agglomerations in the Russian Federation.
References
Alonso, W. (1973). Urban zero population growth. Daedalus, 102 (4), 191-206.
Bufetova, A. N. (2020). Dynamics of the Size Distribution of the Russian Non-Capital Cities in the Post-Soviet Period. Ekonomika regiona [Economy of region], 16 (3), 948-961. https://doi.org/10.17059/ekon.reg.2020-3-21 (In Russ.)
Burger, M. J., & Meijers, E. J. (2016). Agglomerations and the rise of urban network externalities. Papers in Regional Science, 95 (1), 5-15. http://dx.doi.org/10.1111/pirs.12223
Camagni, R. P., & Salone, C. (1993). Network urban structures in northern Italy: Elements for a theoretical framework. Urban Studies, 30 (6), 1053-1064. https://doi.org/10.1080/00420989320080941
Camagni, R., Capello, R., & Caragliu, A. (2015). Agglomeration economies in large versus small cities: similar laws, high specifities. In: K. Kourtit, P. Nijkamp, R. R. Stough (Eds.), The rise of the city (pp. 85–114). Cheltenham: Edward Elgar. https://doi.org/10.4337/9781783475360.00010
Camagni, R., Diappi, L., & Leonardi, G. (1986). Urban growth and decline in a hierarchical system: A supply-oriented dynamic approach. Regional Science and Urban Economics, 16 (1), 145–160.
Catin, M. (1991). Économies d’agglomération et gains de productivité. Revue d’Économie Régionale et Urbaine [Journal of Regional and Urban Economics], 5, 565-598. (In French)
Ellison, G., Glaeser, E. L., & Kerr, W. R. (2010). What causes industry agglomeration? Evidence from coagglomeration patterns. American Economic Review, 100 (3), 1195-1213. https://doi.org/10.1257/aer.100.3.1195
Faggio, G., Silva, O., & Strange, W. C. (2017). Heterogeneous agglomeration. The Review of Economics and Statistics, 99 (1), 80-94. https://doi.org/10.1162/REST_a_00604
Fauser, V. V., Smirnov, A. V., Lytkina, T. S., & Fauzer, G. N. (2021). Urban agglomerations in the settlement system of the north of Russia. Ekonomicheskie i sotsialnye peremeny: fakty, tendentsii, prognoz [Economic and social changes: facts, trends, forecast], 14 (4), 77-96. https://doi.org/10.15838/esc.2021.4.76.5 (In Russ.)
Fingleton, B., & López-Bazo, E. (2006). Empirical growth models with spatial effects. Papers in Regional Science, 85 (2), 177-198. https://doi.org/10.1111/j.1435-5957.2006.00074.x
Glaeser, E. L. (2022). What can developing cities today learn from the urban past. Regional Science and Urban Economics, 94, 103698. https://doi.org/10.1016/j.regsciurbeco.2021.103698
Glaeser, E. L., Kallal, H. D., Scheinkman, J. A., & Shleifer, A. (1992). Growth in cities. Journal of Political Economy, 100 (6), 1126-1152. https://doi.org/10.1086/261856
Hanlon, W. W. (2012). Industry connections and the geographic location of economic activity. SSRN Electronic Journal. URL: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2143419 (Date of access: 26.02. 2022).
Henderson, V., Kuncoro, A., & Turner, M. (1995). Industrial development in cities. Journal of Political Economy, 103 (5), 1067-1090. https://doi.org/10.1086/262013
Hesse, M. (2014). On borrowed size, flawed urbanisation and emerging enclave spaces: The exceptional urbanism of Luxembourg, Luxembourg. European Urban and Regional Studies, 23 (4), 612-627. https://doi.org/10.1177/0969776414528723
Kolomak, E. A. (2016). Russian Urban System. Region: ekonomika i sotsiologiya [Region: Economics & Sociology], 1 (89), 233-248. https://doi.org/10.15372/REG20160110 (In Russ.)
Lavrikova, Yu. G., & Akberdina, V. V. (2019). Technologies for designing spatial development of an industrial metropolis. Journal of New Economy, 20 (2), 85–99. https://doi.org/10.29141/2073-1019-2019-20-2-5 (In Russ.)
Limonov, L. E., & Nesena, M. V. (2015). Typology of large cities of Russia by economic structure. Izvestiya Russkogo geograficheskogo obshchestva [Proceedings of the Russian Geographical Society], 147 (6), 59-77. (In Russ.)
Lucas, R. E. (1988). On the mechanics of economic development. Journal of Monetary Economics, 22 (1), 3-42. https://doi.org/10.1016/0304-3932(88)90168-7
Meijers, E. J., Burger, M. J., & Hoogerbrugge, M. M. (2016). Borrowing size in networks of cities: City size, network connectivity and metropolitan functions in Europe. Papers in Regional Science, 95 (1), 181-198. https://doi.org/10.1111/pirs.12181
Mirgorodskaya, E. O. (2017). Assessment of the territorial and economic connection of cities in the agglomeration (The case of Big Rostov). Vestnik VolGU. Seriya 3, Ekonomika. Ekologiya [Science Journal of VolSU. Global Economic System], 19 (4), 6-20. https://doi.org/10.15688/jvolsu3.2017.4.1 (In Russ.)
Mossay, P., Picard, P. M., & Tabuchi, T. (2020). Urban structures with forward and backward linkages. Regional Science and Urban Economics, 83, 103522. https://doi.org/10.1016/J.REGSCIURBECO.2020.103522
Parr, J. B. (2002). Agglomeration economies: Ambiguities and confusions. Environment and Planning A: Economy and Space, 34 (4), 717-731. https://doi.org/10.1068/a34106
Phelps, N. A. (1992). External economies, agglomeration and flexible accumulation. Transactions of the Institute of British Geographers, 17 (1), 35-46. https://doi.org/10.2307/622635
Pogonyi, C. G., Graham, D. J., & Carbo, J. M. (2021). Metros, agglomeration and displacement. Evidence from London. Regional Science and Urban Economics, 90, 103681. https://doi.org/10.1016/j.regsciurbeco.2021.103681
Porter, M. E. (1996). Competitive advantage, agglomeration economies, and regional policy. International Regional Science Review, 19 (1–2), 85–90. https://doi.org/10.1177/016001769601900208
Rastvortseva, S. N., & Ternovskii, D. S. (2016). Drivers of Concentration of Economic Activity in Russia’s Regions. Ekonomicheskie i sotsialnye peremeny: fakty, tendentsii, prognoz [Economic and social changes: facts, trends, forecast], 2 (44), 153-170. https://doi.org/10.15838/esc.2016.2.44.9 (In Russ.)
Romer, P. M. (1986). Increasing returns and long-run growth. Journal of Political Economy, 94 (5), 1002-1037. https://doi.org/10.1086/261420
Sun, Y. (2016). Functional-coefficient spatial autoregressive models with nonparametric spatial weights. Journal of Econometrics, 195 (1), 134-153. https://doi.org/10.1016/j.jeconom.2016.07.005
Zubarevich, N. V. (2017). Russia’s agglomerations development: trends, resources and governing. Obshchestvennye nauki i sovremennost [Social sciences and contemporary world], 6, 5-21. (In Russ.)
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Манаева Инна Владимировна
This work is licensed under a Creative Commons Attribution 4.0 International License.
