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Modelling economic development of an industrial metropolis

Author

Listed:
  • Veniamin G. Mokhov

    (South Ural State University, Chelyabinsk, Russia)

  • Vladimir G. Pluzhnikov

    (South Ural State University, Chelyabinsk, Russia)

Abstract

Current turbulence of external environment pushes the research towards exploring municipalities’ economic development. The purpose of the work is to devise a method for assessing the factors behind economic development of an industrial metropolis based on the construction of a production function. Theoretical propositions of macroeconomics and systems analysis constitute the methodological basis of the research. The main method is the construction of the Cobb–Douglas production function given autonomous Hicks-neutral technical change. The evidence is the data of the Federal State Statistics Service’s regional office of Chelyabinsk Region on the production output (volume of own production (works, service) shipped), cost of production assets, and payroll in the city of Chelyabinsk for 2014–2021, as well as price deflators. The model is formalised in the form of a computer program and is registered by the state, which reflects its practical value. The theoretical and methodological significance of the research consists in that for the first time in economic practice it demonstrates that individual elasticity coefficients can take negative values. The findings of the study can be used for forecasting the results of the interventions aimed at increasing the economic sustainability of an industrial metropolis.

Suggested Citation

  • Veniamin G. Mokhov & Vladimir G. Pluzhnikov, 2024. "Modelling economic development of an industrial metropolis," Journal of New Economy, Ural State University of Economics, vol. 25(1), pages 69-86, April.
    • Handle: RePEc:url:izvest:v:25:y:2024:i:1:p:69-86
    DOI: 10.29141/2658-5081-2024-25-1-4
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    References listed on IDEAS

    as
    1. Bulanov, S.V. & Echkina, E.Y. & Inovenkov, I.N., 2004. "The nonlinear dynamics of the business center in Beckmann's model," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 344(1), pages 104-107.
    2. Nathaniel Baum-Snow & Matthew Freedman & Ronni Pavan, 2018. "Why Has Urban Inequality Increased?," American Economic Journal: Applied Economics, American Economic Association, vol. 10(4), pages 1-42, October.
    3. José Lobo & Luís M A Bettencourt & Deborah Strumsky & Geoffrey B West, 2013. "Urban Scaling and the Production Function for Cities," PLOS ONE, Public Library of Science, vol. 8(3), pages 1-10, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    industrial metropolis; resourcing; municipal development; economic growth; production function;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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