Economic Dominance of the Russian Capital: Causes and Consequences

Abstract

Economic primacy of the capital is a prominent feature of the spatial structure of the Russian economy. The main ideas on urban primacy presented in the literature are considered and applied to the case of Moscow. It can be concluded that the probable causes of primacy of the capital in Russia are political ones. Russia has features that make political favoritism towards the capital city very likely. They include poor development of democratic institutions, a significant role of personal relationships, especially with the authorities, in all kinds of economic activity and dependence on natural resources exports. There are two basic active mechanisms of income concentration in the capital — concentration of business and the fiscal one. The consequences of such dominance of the capital can be negative for the country’s economic development.