Abstract
Considering economic instability and high heterogeneity in the location of production capacities, it is important to examine the influence of various factors on economic activity of business entities. It is hypothesised that that there are spatial effects in the dynamics of the volume of goods shipped by enterprises, resulting from the impact of surrounding municipalities. The study aims to assess the factors of economic activity of business entities in municipalities of the region and to model spatial effects. Spatial regression analysis and modelling methods (SAR model) were applied to identify and assess factors that affect economic activity of enterprises in municipalities. As a result of modelling, the following conclusion was made: a reliable model is a model in which the key factors of the growth of economic activity of enterprises are investments in fixed capital and spatial effects from the impact of surrounding territories.
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