Abstract

ABSTRACT This analysis has disproved the widespread opinion that, in Eastern Russia, where the settlement structure and transport network are less dense, agglomeration effects are either absent or negligible. Econometric estimates have revealed a significant contribution of agglomeration economies to the efficiency of companies mainly in the southern regions. However, for a substantial part of Eastern Russia, agglomeration effects are insignificant and for some territories they are negative. The manifestation of agglomeration effects depends neither on the density of economic activity nor on the development of communication infrastructure. Lack of cooperation between local producers hinders the realisation of existing agglomeration potential in Eastern Russia.

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