AGGLOMERATION ECONOMIES AND GEOGRAPHIC CONCENTRATION OF MANUFACTURING IN UKRAINE

As a post-Soviet economy, Ukraine has inherited substantial production assets and qualified personnel. However, the economy was dominated by large-scale enterprises designed for much bigger markets. After the collapse of the Soviet Union Ukrainian firms faced lack of planning, breaks in contacts wit...

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Main Author: Vakhitov, Volodymyr
Format: Others
Published: UKnowledge 2008
Subjects:
Online Access:http://uknowledge.uky.edu/gradschool_diss/635
http://uknowledge.uky.edu/cgi/viewcontent.cgi?article=1638&context=gradschool_diss
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spelling ndltd-uky.edu-oai-uknowledge.uky.edu-gradschool_diss-16382015-04-11T05:02:10Z AGGLOMERATION ECONOMIES AND GEOGRAPHIC CONCENTRATION OF MANUFACTURING IN UKRAINE Vakhitov, Volodymyr As a post-Soviet economy, Ukraine has inherited substantial production assets and qualified personnel. However, the economy was dominated by large-scale enterprises designed for much bigger markets. After the collapse of the Soviet Union Ukrainian firms faced lack of planning, breaks in contacts with their former suppliers and customers, and distortion of prices. There was a clear need in restructuring of the entire economy. Restructuring included splitting firms into smaller parts and privatization. The first phase of transition was completed by 2000 when the output grew for the first time after a long recession in nineties, and most firms became private property. In this work I explore trends in geographic and industrial concentration of Ukrainian manufacturing firms over the period of 2001 to 2005. I found that this period was characterized by relocation of firms between sectors and between regions, as well as by an increase in economic concentration of industries. The speed of adjustment was different for various sectors and even for different industries within manufacturing. Even though the economy is still dominated by large firms, the average firm size decreases due to a rapid growth in the number of new firms. Geographically, manufacturing tends to increasingly concentrate mostly around a few big cities, apparently at the expense of other regions. I also estimate the external scale effects and compare them with Western studies. In particular I focus on machinery and high tech. I found strong localization and urbanization effects in both industry groups. An important contribution of this work is the analysis of the effect of ownership structure on agglomeration economies. I found that private firms tend to enjoy external scale effects to a greater extent than state owned, and foreign owned firms appear to be the most efficient in extracting benefits form agglomeration. Aggregation of the data may distort the estimates of agglomeration effects. I show that most effects take place at the nearest neighborhoods. When the physical distance between firms increases agglomeration effects attenuate quickly. However, localization effects reveal themselves at different level of industrial aggregation for various industries. This may reflect more complicated relationships within sectors and requires further analysis. 2008-01-01T08:00:00Z text application/pdf http://uknowledge.uky.edu/gradschool_diss/635 http://uknowledge.uky.edu/cgi/viewcontent.cgi?article=1638&context=gradschool_diss University of Kentucky Doctoral Dissertations UKnowledge Agglomeration economies geographic concentration data aggregation transition economies ownership structure Economics International Economics
collection NDLTD
format Others
sources NDLTD
topic Agglomeration economies
geographic concentration
data aggregation
transition economies
ownership structure
Economics
International Economics
spellingShingle Agglomeration economies
geographic concentration
data aggregation
transition economies
ownership structure
Economics
International Economics
Vakhitov, Volodymyr
AGGLOMERATION ECONOMIES AND GEOGRAPHIC CONCENTRATION OF MANUFACTURING IN UKRAINE
description As a post-Soviet economy, Ukraine has inherited substantial production assets and qualified personnel. However, the economy was dominated by large-scale enterprises designed for much bigger markets. After the collapse of the Soviet Union Ukrainian firms faced lack of planning, breaks in contacts with their former suppliers and customers, and distortion of prices. There was a clear need in restructuring of the entire economy. Restructuring included splitting firms into smaller parts and privatization. The first phase of transition was completed by 2000 when the output grew for the first time after a long recession in nineties, and most firms became private property. In this work I explore trends in geographic and industrial concentration of Ukrainian manufacturing firms over the period of 2001 to 2005. I found that this period was characterized by relocation of firms between sectors and between regions, as well as by an increase in economic concentration of industries. The speed of adjustment was different for various sectors and even for different industries within manufacturing. Even though the economy is still dominated by large firms, the average firm size decreases due to a rapid growth in the number of new firms. Geographically, manufacturing tends to increasingly concentrate mostly around a few big cities, apparently at the expense of other regions. I also estimate the external scale effects and compare them with Western studies. In particular I focus on machinery and high tech. I found strong localization and urbanization effects in both industry groups. An important contribution of this work is the analysis of the effect of ownership structure on agglomeration economies. I found that private firms tend to enjoy external scale effects to a greater extent than state owned, and foreign owned firms appear to be the most efficient in extracting benefits form agglomeration. Aggregation of the data may distort the estimates of agglomeration effects. I show that most effects take place at the nearest neighborhoods. When the physical distance between firms increases agglomeration effects attenuate quickly. However, localization effects reveal themselves at different level of industrial aggregation for various industries. This may reflect more complicated relationships within sectors and requires further analysis.
author Vakhitov, Volodymyr
author_facet Vakhitov, Volodymyr
author_sort Vakhitov, Volodymyr
title AGGLOMERATION ECONOMIES AND GEOGRAPHIC CONCENTRATION OF MANUFACTURING IN UKRAINE
title_short AGGLOMERATION ECONOMIES AND GEOGRAPHIC CONCENTRATION OF MANUFACTURING IN UKRAINE
title_full AGGLOMERATION ECONOMIES AND GEOGRAPHIC CONCENTRATION OF MANUFACTURING IN UKRAINE
title_fullStr AGGLOMERATION ECONOMIES AND GEOGRAPHIC CONCENTRATION OF MANUFACTURING IN UKRAINE
title_full_unstemmed AGGLOMERATION ECONOMIES AND GEOGRAPHIC CONCENTRATION OF MANUFACTURING IN UKRAINE
title_sort agglomeration economies and geographic concentration of manufacturing in ukraine
publisher UKnowledge
publishDate 2008
url http://uknowledge.uky.edu/gradschool_diss/635
http://uknowledge.uky.edu/cgi/viewcontent.cgi?article=1638&context=gradschool_diss
work_keys_str_mv AT vakhitovvolodymyr agglomerationeconomiesandgeographicconcentrationofmanufacturinginukraine
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