Small Towns Can Achieve Agglomeration Economies, Boosting Local Economies
The article examines whether small towns in Sverdlovsk Region, Russia experience agglomeration effects. The researchers focused on three towns and found that industrial specialization leads to agglomeration benefits like increased production. One town with industrial specialization showed constant returns to scale and growth in production due to capital investment. In contrast, towns without industrial specialization did not experience these benefits. Overall, the study suggests that small towns with effective industrial production can benefit from agglomeration effects, similar to larger cities.
