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Geographical Concentration of Soviet Industries: A Comparative Analysis

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  • Kofanov, D.

    (University of Wisconsin-Madison, USA)

  • Mikhailova, T.

    (Russian Academy of National Economy and Public Administration, Moscow, Russia)

Abstract

This paper analyzes the geographical concentration of manufacturing industries in Russia before the beginning of transition. We calculate Duranton- Overman (Duranton, Overman, 2005) indices of localization and dispersion for 4-digit US SIC 1987 industries of civilian manufacturing in the RSFSR in 1989. Comparative analysis reveals that industries in the RSFSR were less localized than in geographically compact countries of Western Europe. On the other hand, compared to another country with large territory and low population density - Canada, industries in RSFSR exhibit similar overall degree of geographical dispersion. Compared to Canada, Russia has less localization in the technologically sophisticated industries. Such pattern of industrial localization suggests that the Soviet planning system could account for the benefits of localization near inputs or near consumers, but could not internalize the knowledge spillover externalities, that are especially important for the technologically advanced industries.

Suggested Citation

  • Kofanov, D. & Mikhailova, T., 2015. "Geographical Concentration of Soviet Industries: A Comparative Analysis," Journal of the New Economic Association, New Economic Association, vol. 28(4), pages 112-141.
    • Handle: RePEc:nea:journl:y:2015:i:28:p:112-141
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    References listed on IDEAS

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    1. Stefania Vitali & Mauro Napoletano & Giorgio Fagiolo, 2013. "Spatial Localization in Manufacturing: A Cross-Country Analysis," Regional Studies, Taylor & Francis Journals, vol. 47(9), pages 1534-1554, October.
    2. Pierre-Philippe Combes & Thierry Mayer & Jacques-François Thisse, 2008. "Economic Geography: The Integration of Regions and Nations," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00311000, HAL.
    3. Gilles Duranton & Henry G. Overman, 2005. "Testing for Localization Using Micro-Geographic Data," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(4), pages 1077-1106.
    4. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    5. Ellison, Glenn & Glaeser, Edward L, 1997. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," Journal of Political Economy, University of Chicago Press, vol. 105(5), pages 889-927, October.
    6. Rosenthal, Stuart S. & Strange, William C., 2004. "Evidence on the nature and sources of agglomeration economies," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 49, pages 2119-2171, Elsevier.
    7. Behrens, Kristian & Bougna, Théophile, 2015. "An anatomy of the geographical concentration of Canadian manufacturing industries," Regional Science and Urban Economics, Elsevier, vol. 51(C), pages 47-69.
    8. Nakajima, Kentaro & Saito, Yukiko Umeno & Uesugi, Iichiro, 2012. "Measuring economic localization: Evidence from Japanese firm-level data," Journal of the Japanese and International Economies, Elsevier, vol. 26(2), pages 201-220.
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    Cited by:

    1. P. A. Lavrinenko & T. N. Mikhailova & A. A. Romashina & P. A. Chistyakov, 2019. "Agglomeration Effect as a Tool of Regional Development," Studies on Russian Economic Development, Springer, vol. 30(3), pages 268-274, May.
    2. Luis Eduardo Quintero & Paula Restrepo, 2018. "Market Access and the Concentration of Economic Activity in a System of Declining Cities," REGION, European Regional Science Association, vol. 5, pages 97-109.

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    More about this item

    Keywords

    USSR; economic geography; concentration; manufacturing;
    All these keywords.

    JEL classification:

    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics
    • P31 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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