Does geographical concentration affect the profitability of Russian enterprises?

2021 ◽  
Vol 71 (1) ◽  
pp. 4-17
Author(s):  
K.V. Rostislav

The article shows that profitability is, first, the best measurable approximation to productivity at the level of individual enterprises, and, second, an indicator that captures the possible benefits (or costs) of geographical concentration (agglomeration externalities) in their entirety. The analysis of open microdata of Rosstat and the Federal Tax Service on organizations with an average number of employees of no more than 250 reveals that in Russia the differences in profitability between cities and between industries with different levels of spatial concentration are small and poorly related to geographical conditions (the so-called benefits of localization and urbanization). Worse terms of trade, in particular higher labour costs, outweigh the productivity gains from concentration. At the same time, there are weak signs of a smaller spread of profitability among enterprises in more central territories due to better opportunities for imitation and exchange of experience. The profitability of enterprises is significantly influenced by their industry, but this relationship does not arise due to differences between industries in the degree of their geographical concentration. To assess the agglomeration effects, new measures of centrality that appreciate the network nature of territorial relations between residents of localities were used.

2016 ◽  
Vol 45 (2) ◽  
pp. 283-302 ◽  
Author(s):  
Grant A. Driessen ◽  
Steven M. Sheffrin

Interstate mobility may limit states’ ability to choose their desired tax policies. The forces of agglomeration, however, may allow states more leeway in setting tax rates. Moreover, mobility and agglomeration effects are not uniform for all individuals within a state and may vary significantly across different groups. We explore this heterogeneity by examining the residential location decisions of professional racecar drivers and golfers, which have similar industry characteristics but different levels of agglomeration. Consistent with our theory, we show that tax preferences are a powerful determinant of golfer residential patterns, while agglomeration mitigates much of this effect among racecar drivers. These findings highlight the need to better understand how competition and agglomeration interact when formulating tax policy.


2019 ◽  
Vol 92 (3) ◽  
pp. 331-345 ◽  
Author(s):  
Agata Górny ◽  
Przemysław Śleszyński

The unprecedented growth of immigration into Poland after 2013, especially from Ukraine, raises optimism among employers, and concerns among some social and political actors. The goal of this article is to contribute to that discussion, with a view to identifying a detailed geographical localisation of labour migrants employed under the simplified procedure (on the basis of employers’ declarations of a consent to employ a foreigner) – as an important legal channel by which the influx of foreign workers into Poland is taking place. Analyses of the register of declarations for 2012-2017 reveal a certain weakening of the geographical concentration of the foreign labour force in Poland. The highest intensity of foreign employment has been observed in rural areas, while the greatest numbers of declarations for work have been registered in large cities. The geographical distribution of the foreign labour force in Poland has been shaped by activities of employment agencies especially in recent years.


Subject Wages and development in Mexico. Significance Mexico's labour costs have been rising since 2015, particularly in some manufacturing activities, and political pressure is increasing for a substantial minimum wage hike. For exporting sectors, the significant peso depreciation has meant a substantial boost in wage competitiveness. However, there are no significant productivity gains that warrant such rises. Impacts A peso appreciation would erode wage competitiveness, even if a strengthening to pre-2014 levels is unlikely. Despite political pressures, no out-of-calendar minimum wage increases are likely for the rest of the Pena Nieto administration. Real wage increases should not affect on inflation given subdued economic growth.


Author(s):  
Nicholas Crafts ◽  
Alexander Klein

Abstract We re-examine the long-run geographical development of US manufacturing industries using recent advances in spatial concentration measures. We construct spatially weighted indices of the geographical concentration between 1880 and 2007 taking into account industrial structure and checkerboard problem. New results emerge. Average spatial concentration was much lower in the late 20th than in the late 19th century, and it was the outcome of a continuing reduction over time. Spatial concentration did not increase in the early 20th century but declined, and we find no inverted-U shape pattern of long-run spatial concentration. The persistent tendency to greater spatial dispersion was characteristic of most industries.


1999 ◽  
Vol 89 (1) ◽  
pp. 272-290 ◽  
Author(s):  
Catherine J. Morrison Paul ◽  
Donald S Siegel

Scale economies and agglomeration externalities are alleged to be important determinants of economic growth. To assess these effects, we outline and estimate a microfoundations model based on a dynamic cost function specification. This model provides for the separate identification of the impacts of externalities and cyclical utilization on short- and long-run scale economies and input substitution patterns. We find that scale economies are prevalent in U.S. manufacturing, cost savings and scale effects often attributed to internal inputs may be due to external factors, and supply-side agglomeration effects are greater than demand-side, especially in the long run. (JEL O47, E23)


2021 ◽  
Author(s):  
Nadiia Reshetnyk ◽  
Natalia Shulpina ◽  
Olga Reshetnyk

The article considers the problem of new, modified, inflation processes manifestation in the present-day market environment. Modern approaches to the inflation processes analysis are brought to light. In particular, the problems of inflation detection, causes of inflation, anti-inflation policy and acceptable level of inflation for countries with different levels of market development are revealed. Attention is paid to modern directions of inflation research. Manifestations of inflation processes modifications are determined in the article, penetration into economy related fields such as educational, social, intellectual, etc. are revealed. The focus is set on the necessity of a new look at these processes, in particular it concerns the emergence of modern, scantily explored categories, such as “shrinkflation” and “panflation”, which require more thorough research. It is proved that inflation processes in the monetary environment acquire new qualities as a result of the active development of cryptocurrencies varieties which operate outside of state regulation. Inflation processes deepen in the financial environment due to the state uncontrolled spread of financial innovation instruments (derivatives), characterized by separation from their ontological, material basis. In today’s financial markets, speculative transactions with innovative products are not directly related to production, which provokes constant financial instability. It is shown that the modern economy – the knowledge economy in Ukraine is exposed to inflation processes, which manifest themselves in the devaluation of the human capital role as a factor of production. The entire educational sphere in its various manifestations is devaluated, in particular, productive learning time, knowledge level, its assessment, educational documentation and moral and ethical standards of scientific activity is depreciated. It is shown that these processes lead to the depreciation of labour costs and the gap with the level of education. The peculiarities of these processes influence on the Ukrainian economy development are revealed. It is stated that ignoring these manifestations of panflation processes leads to their reproduction, expansion and penetration into new spheres.


2005 ◽  
Vol 95 (5) ◽  
pp. 1464-1491 ◽  
Author(s):  
Esteban Rossi-Hansberg

The equilibrium relationship between trade and the spatial distribution of economic activity is fundamental to the analysis of national and regional trade patterns, as well as to the effect of trade frictions. We study this relationship using a trade model with a continuum of regions, transport costs, and agglomeration effects caused by production externalities. We analyze the equilibrium specialization and trade patterns for different levels of transport costs and externality parameters. Understanding trade via the distribution of economic activity in space naturally rationalizes the evidence on border effects and the “gravity equation.”


Author(s):  
J. E. Doherty ◽  
A. F. Giamei ◽  
B. H. Kear ◽  
C. W. Steinke

Recently we have been investigating a class of nickel-base superalloys which possess substantial room temperature ductility. This improvement in ductility is directly related to improvements in grain boundary strength due to increased boundary cohesion through control of detrimental impurities and improved boundary shear strength by controlled grain boundary micros true tures.For these investigations an experimental nickel-base superalloy was doped with different levels of sulphur impurity. The micros tructure after a heat treatment of 1360°C for 2 hr, 1200°C for 16 hr consists of coherent precipitates of γ’ Ni3(Al,X) in a nickel solid solution matrix.


Author(s):  
M. Kraemer ◽  
J. Foucrier ◽  
J. Vassy ◽  
M.T. Chalumeau

Some authors using immunofluorescent techniques had already suggested that some hepatocytes are able to synthetize several plasma proteins. In vitro studies on normal cells or on cells issued of murine hepatomas raise the same conclusion. These works could be indications of an hepatocyte functionnal non-specialization, meanwhile the authors never give direct topographic proofs suitable with this hypothesis.The use of immunoenzymatic techniques after obtention of monospecific antisera had seemed to us useful to bring forward a better knowledge of this problem. We have studied three carrier proteins (transferrin = Tf, hemopexin = Hx, albumin = Alb) operating at different levels in iron metabolism by demonstrating and localizing the adult rat hepatocytes involved in their synthesis.Immunological, histological and ultrastructural methods have been described in a previous work.


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