A study of agglomeration processes on the territory of Novosibirsk oblast

Abstract

This is a study of agglomeration processes within Novosibirsk oblast, a federal subject. The study is empirical in nature; the theoretical framework is based on the principles of the new economic geography. The analysis shows that, despite the high level of spatial concentration of economic activity, the agglomeration processes tend to continue. The factors the dynamics of spatial differences within the oblast are the size of the local markets and the intensity of relationships between market agents. At the same time the interactions between different municipal districts within the oblast are dominated by negative effects; the districts are adversely affected by the proximity to Novosibirsk, a city with a large economy. The patterns identified in the study provide evidence of a very likely increase in the polarization of Novosibirsk oblast. The processes and relationships that underlie the agglomeration tendencies in the territory are based on technological and market factors, such as increasing returns to scale of economic activity and imperfect competition in regional markets. The market transformations in Russia have strengthened the role and influence of these factors. Thus, despite the continued interest from the oblast administration toward territorial development and their vigorous redistribution policy, there are no signs of a decrease in spatial differences across the oblast.