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The well-being of Russian cities: does location matter?

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  • Vera Ivanova

Abstract

Using the data covering the time period from 1996 till 2011, I estimate a spatial autoregressive model of wages' growth rates across Russian cities. I _x001C_find that wages in Russian cities exhibit convergence. I also test whether city population (which is a proxy for city size) has positive impact on the speed of convergence. Using geographical location characteristics (longitude, latitude, average annual temperature, soil quality) and historical data (the fi_x001C_rst two censuses of the country) as instruments for population, I _x001C_find a positive relationship between city size and city growth. In other words, cities converge in wages, but diverge in size.

Suggested Citation

  • Vera Ivanova, 2015. "The well-being of Russian cities: does location matter?," ERSA conference papers ersa15p956, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa15p956
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    More about this item

    Keywords

    cities; wages; convergence; spatial econometrics;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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