Prostranstvennaâ Èkonomika (Oct 2022)
The Resource Concentration in Moscow: Impact on the Economy of the Central Federal District
Abstract
The article discusses the development of the economy of the regions of the Central Federal District (CFD) in 1998–2020. There are three sectors – Moscow, the Moscow region and the remaining 16 regions. The economic development of these sectors and the impact of resource concentration to the Moscow agglomeration are analyzed. The periphery of the CFD is losing human capital of the highest quality, which decreases the opportunities for its economic development. The purpose of the article is to give a comparative analysis of the economic development of Moscow and other regions of the Central Federal District in 1998–2020. It also examines how the development efficiency of the other 16 regions of the CFD is changing against the background of the outflow of young people to Moscow, the reasons for the change in the growth rates and efficiency of the development of the Moscow economy are being clarified as well. The analysis of the graphs of indicators made it possible to distinguish two periods – before and after the 2008–2009 crisis. We analise influence of selected sectors and structural shifts on the dynamics of labor productivity of the CFD economy, using the methods of economic statistics. Production functions were constructed and the impact of investments on the economic growth rates of the three selected sectors was assessed. During the first period, the Moscow agglomeration was developing successfully, its socio-economic indicators were growing rapidly, and its development efficiency was high. The concentration of resources contributed to faster and more efficient growth of the CFD economy. After the crisis, the migration of the population to the Moscow agglomeration and the concentration of investments has continued, but the growth of the Moscow economy has stopped, and the efficiency of development has decreased sharply. The development of the economy of the third sector of the CFD, which is losing resources, has noticeably slowed down, and efficiency has somewhat decreased. The concentration of resources in Moscow has begun to affect the growth rates of the CFD economy negatively
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