XIV Апрельская международная научная конференция по проблемам развития экономики и общества: в 4-х книгах. Книга 3
The paper estimates productivity agglomeration effects for manufacturing plants located within the Russian urban agglomeration. The last was defined as a central city and other towns located within the distance of 50 km from the central city. The data employed is the survey data collected by HSE in the year of 2009. We estimated the multilevel models. The results imply that location within the urban agglomeration is always significantly and positively associated with the higher productivity of the manufacturing plants, while local economic diversification provides an explanation for the power of agglomeration forces. The city size affects positively the productivity only outside urban agglomerations, thus providing evidence that specialization and interaction of economic agents in the dense economic space allow to overcome the negative side of location in a small town.