IMPACT OF FLAGSHIP ENTERPRISES ON TERRITORIAL PRODUCTIVITY: AN ECONOMETRIC ANALYSIS AT THE MUNICIPALITIES’ LEVEL

Abstract

The article considers the direct and indirect influence of flagship enterprises on territorial productivity in the context of municipalities of three constituent entities of the Russian Federation. The authors suggest hypothesis that the presence of flagship enterprises affects positively on the level of territorial productivity. The paper assumes that a number of socio-economic factors enhance the impact of flagship enterprises on territorial productivity. The analysis of panel data from 84 municipalities in three regions of the Russian Federation confirmed the positive role of flagship enterprises in increasing the productivity of municipalities. These effects are particularly strong when the territory has a high income level, high population growth rates and low unemployment level. The results are characterized by high stability and make it possible to form recommendations for governing bodies on creating conditions for faster growth.

Keywords

• basic industry
• concentration
• econometric analysis
• flagship enterprises
• municipalities
• panel data
• product output
• territorial productivity
• regional development