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Effects of Ownership on Agglomeration Economies: Evidence from Ukrainian Firm Level Data

Volodymyr Vakhitov () and Chris Bollinger
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Chris Bollinger: University of Kentucky

No 24, Discussion Papers from Kyiv School of Economics

Abstract: We use establishment level longitudinal data to estimate agglomeration economies in the Ukraine for machine manufacturing and hi-tech industries. We differentiate state-owned, private-domestic-owned and private-internationally-owned firm types. Our baseline results are comparable to other firm level measures of similar industries and to other research in the former Soviet Union. We find that state owned firms accrue little or no agglomeration benefits, while privately-owned firms are able to take advantage of agglomeration effects. Foreign-owned firms may gain the most from agglomeration. These results suggest that agglomeration economies are typically gained at the management level.

Keywords: Agglomeration; Localization Economies; Ownership Structure; Transition; Production Function (search for similar items in EconPapers)
JEL-codes: O1 P2 R1 R3 (search for similar items in EconPapers)
Date: 2010-05
New Economics Papers: this item is included in nep-eff, nep-tra and nep-ure
Note: Submitted to the Journal of Urban Economics
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Citations: View citations in EconPapers (1)

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