Productivity Boost for Midsize Russian Factories in Urban Hubs
The article examined if manufacturing companies in Russian cities benefit from being in crowded areas. By studying how company productivity relates to living in busy urban hubs, they found that city plants show higher labor productivity of around 17-21%. This boost in productivity is most significant in towns with 100,000 to 250,000 residents because of urbanization and shared resources. Interestingly, having lots of similar companies nearby in the same city doesn't necessarily increase productivity, but when companies cluster within a region, it does improve efficiency. The study also pointed out that the productivity boost from city living is most apparent among medium-productivity firms, with low- and high-productivity firms not seeing the same benefits.