Evaluation of the Level of Production Concentration in Russian Processing Industry in the Contex of Economy Digitalization

Abstract

The significant difference in the level of economic development of Russian regions allows us to consider their interaction as a relationship between the «center» and «periphery». The article highlights the factors that contribute to and hinder from production density in the «center». The author defines how economy digitalization influences these factors. To analyze the process of manufacturing industry density in Russia, we used regional data on employment and production volume in this industry from 2000 to 2016. The concentration level was estimated using the Herfindahl-Hirschman, Krugman, and CRN indices. The article demonstrates that there is an increase in geographical density of people employed in manufacturing industry in Russia. It is noted that labor productivity in manufacturing industry in the «center» consistently exceeds this indicator in the «periphery».