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Region: Economics and Sociology

2019 year, number 4

ESTIMATING SPATIAL COHERENCE OF ECONOMIC ACTIVITY IN RUSSIAN REGIONS

E.A. Kolomak1,2
1Institute of Economics and Industrial Engineering, Siberian Branch of the Russian Academy of Sciences, Novosibirsk, Russia
2Novosibirsk National Research State University, Novosibirsk, Russia
Keywords: пространственная связность, экономическая активность, регионы России, эконометрические оценки, spatial coherence, economic activity, Russian regions, econometric estimates

Abstract

The article studies a change in the spatial coherence of economic activity of Russian regions that occurred over the period from 1997 to 2016. We obtain quantitative estimates through spatial econometric methods and use two model specifications: the spatial lag model and the spatial error model. Relations between regions are modeled as spatial externalities described in two ways, either with the adjacency or distance matrix. The article tests the following hypotheses: 1) unified macroeconomic policy and market integration encourage better spatial coherence of economic activity; 2) the western Russian regions have a stronger spatial bond in comparison with the eastern ones; 3) economic sanctions against Russia encouraged creating new internal relations and strengthening the existing ones, as well as increased overall spatial coherence inside the country. According to our estimates, there are no distinct trends towards change in the spatial coherence of economic activity in Russia, and international sanctions did not affect interregional relations. Territories maintain interactions crucial for economic activity primarily with their neighbors. The cooperation that emerges between regions is not spatially deep and quickly fades with increasing distance. This observation is also confirmed by the fact that spatial relations are much more significant for the European part of the country compared to the eastern regions.