Spatial Concentration Boosts Firm Productivity in Russian Cities, Reshaping Regional Economies
The study looks at how having similar businesses in a city affects how well companies perform in Russia. They used a way of looking at data over time to correct for some issues. They found out that when there are more businesses like yours in a city, it's good for your company. Also, being in a bigger city helps companies do better. However, these benefits differ depending on the type of city. In cities where businesses are very close together, wages don't seem to have a big impact on how much money companies make, unlike in other cities. It seems like the main city in a group of cities sets the level of wages for all the cities in the group. To help places grow well, it's important to have a mix of policies that work for each area.