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Natalia Davidson

  • I am a researcher and an associate professor at the Ural Federal University, Ekaterinburg, Russia. My research intere... moreedit
ABSTRACT This paper contributes to research on enterprise formation by studying location decisions of Russian enterprises in various industries, taking into consideration the role of historical heritage, comparing firms created during the... more
ABSTRACT This paper contributes to research on enterprise formation by studying location decisions of Russian enterprises in various industries, taking into consideration the role of historical heritage, comparing firms created during the communist period to younger ones. We apply a negative binomial model and use the Ruslana database provided by the Bureau van Dijk. Our results show that firms created during the communist period have a specific structure, and that, once this specificity is taken into account, they do not differ from other firms with respect to their sensitivity to the main location factors (market potential, business risk, local human capital, and knowledge base). There are some differences across industries, including that firms in the high-tech and integrators industries are particularly sensitive to the knowledge base.
We investigate the impact of R&D spending on firm productivity through innovation and human capital channels. To this end, we apply the structural CDM model to analyse a comprehensive Russian-firm level data obtained from the Business... more
We investigate the impact of R&D spending on firm productivity through innovation and human capital channels. To this end, we apply the structural CDM model to analyse a comprehensive Russian-firm level data obtained from the Business Environment and Enterprise Performance Survey supplemented with the Regional Integral Index of Innovation Development. We consider internal and external human capital as well as different levels of firms’ technological intensity. Our first stage of analysis demonstrates that dissatisfaction with employees’ specialisation, import of intermediate products, and firm’s association with larger enterprise augment total R&D expenditures. The second stage of analysis reveals that R&D expenditures, cooperation with universities, personnel training, and regional innovations spur the firm’s innovative sales. Finally, the last stage of our analysis affirms our proposition that innovative sales, capital and labour costs per employee accelerate productivity. Our estimation is robust considering the regional differences. Our empirical findings provide several policy implications.
Исследование проводилось при поддержке Консорциума экономического образования и исследований (EERC) и финансировании GDN.
The study discusses the impact of urbanization on the pollutant emissions into the atmosphere in Russian regions in 2001– 2018 based on the data from the Federal State Statistics Service. The regions are divided into two groups by export... more
The study discusses the impact of urbanization on the pollutant emissions into the atmosphere in Russian regions in 2001– 2018 based on the data from the Federal State Statistics Service. The regions are divided into two groups by export activity, to determine the impact of urbanization on air pollution taking into account regional specialization. The study also tests the hypothesis that the costs of innovation play a role in the process of urbanization. Methodologically, the study relies on econometric methods based on the panel data. The results show that a rise in the level of urbanization, calculated as a proportion of the urban population, increases the level of pollutant emissions, regardless of which group the region falls into. The increased costs of technological innovations, on the contrary, lead to a reduction in the volume of emissions, which means that it is necessary to stimulate companies to invest more in equipment modernization. The results of the research can be us...
It is essential to develop entrepreneurship in Russia, both to promote economic growth of the country and its regions, and to create jobs and opportunities for highly qualified personnel. At the same time, institutions and spatial... more
It is essential to develop entrepreneurship in Russia, both to promote economic growth of the country and its regions, and to create jobs and opportunities for highly qualified personnel. At the same time, institutions and spatial concentration of business are known to affect enterprise activity. The aim of our research is to estimate the role of institutional factors and spatial concentration in entrepreneurial activity in Russia's regions. We use panel data for 80 Russian regions covering the period from 2008 to 2018 and apply the system generalized method of moments. Our main contribution to the research on Russian regions is that in addition to institutional factors we estimate spatial effects, while performing a comprehensive analysis of entrepreneurial activity, i.e. considering small, medium, and large enterprises. The results of the empirical analysis show that the impact of institutional factors on entrepreneurship in Russia is varied. The number of economic crimes in t...
Les données sur les firmes, les villes et les régions russes des années 1999-2008 sont utilisées pour analyser l’impact de l’agglomération et du potentiel de marché (PM) sur la productivité des firmes et leur choix de localisation. Le... more
Les données sur les firmes, les villes et les régions russes des années 1999-2008 sont utilisées pour analyser l’impact de l’agglomération et du potentiel de marché (PM) sur la productivité des firmes et leur choix de localisation. Le salaire, l’infrastructure de transport et le climat économique sont pris en compte. La motivation est de trouver les sources de développement des villes, dont les conditions initiales et la situation actuelle sont considérablement différentes. Les économies d’agglomération sont basées sur le partage, l’adéquation et l’apprentissage. Le Chapitre 3 montre que les économies d’urbanisation et de diversité ainsi que l’effet de PM sont positifs. Les économies de localisation ont la forme de U inversé dans la plupart des cas, mais elles sont positives pour les monovilles ; les économies d’urbanisation sont aussi importantes pour celles-ci. Le Chapitre 4 montre que les économies d’urbanisation résultant de la présence des firmes nationales et étrangères sont p...
Research background: Fossil fuels are used at such a high rate that they are currently being depleted. Moreover, they are associated with a greenhouse effect leading to global warming. Meanwhile, green energy is naturally replenished and... more
Research background: Fossil fuels are used at such a high rate that they are currently being depleted. Moreover, they are associated with a greenhouse effect leading to global warming. Meanwhile, green energy is naturally replenished and fosters sustainable development (Nelson and Starcher, 2015). However, the empirical evidence of the impact of green energy on economic growth is controversial (Adewuyi and Awodumi, 2017; Chen et al., 2020; Destek and Aslan, 2017; Zafar et al., 2018). Purpose of the article: This paper analyses the impact of renewable energy consumption on economic growth in the European Union (EU) countries. This is important in line with the goals of EU to shift towards green energy during the coming years (Directive (EU) 2018/2001). Methods: We use data of the World Bank and Our World in Data over 1990 to 2015 for 28 EU countries. We estimate the impact of renewable energy consumption on the countries’ gross domestic product. The control variables are labor force,...
This paper contributes to research on enterprise formation by studying location decisions of Russian enterprises in various industries, taking into consideration the role of historical heritage, comparing firms created during the... more
This paper contributes to research on enterprise formation by studying location decisions of Russian enterprises in various industries, taking into consideration the role of historical heritage, comparing firms created during the communist period to younger ones. We apply a negative binomial model and use the Ruslana database provided by the Bureau van Dijk. Our results show that firms created during the communist period have a specific structure, and that, once this specificity is taken into account, they do not differ from other firms with respect to their sensitivity to the main location factors (market potential, business risk, local human capital, and knowledge base). There are some differences across industries, including that firms in the high-tech and integrators industries are particularly sensitive to the knowledge base.
International economic relations are important for the countries’ economic growth, especially in the modern world of global value chains and rapid technological development. Russia is known for its comparative advantage in natural... more
International economic relations are important for the countries’ economic growth, especially in the modern world of global value chains and rapid technological development. Russia is known for its comparative advantage in natural resources and for its intentions to diversify the economy. Indeed, specialization in natural resources is not associated with sustainable economic growth. We analyze Russia’s specialization in trade over the period 2009-2018 including the year 2014 when economic and financial sanctions were introduced. We follow the dynamics of Russia’s comparative advantages in different categories of goods in trade with all world countries, BRICS countries and Eurasian Economic Union over these years. Our aim is to shed more light on the current specialization of Russia in order to understand the possibilities of diversifying the economy. We analyze short term consequences of difficulties in international relations that Russia faces, and provide an insight into the long run development of trade. We conclude that Russia currently has a prevailing comparative advantage in material-intensive industries and needs to develop innovations in order to diversify its economy and obtain a comparative advantage in the other categories of goods, including high-tech sector. The results can be useful for development of economic policy.
The goal of this paper is to reveal the key industries of comparative advantage for the Sverdlovsk region in order to make conclusions about the potential of the region’s economic development. We study comparative advantages of the... more
The goal of this paper is to reveal the key industries of comparative advantage for the Sverdlovsk region in order to make conclusions about the potential of the region’s economic development. We study comparative advantages of the Sverdlovsk region based on data for 85 Russian regions covering the period from 2003 to 2018. During the first stage of the research four groups of goods out of twenty-two groups were identified as those in which the Sverdlovsk region possibly has comparative advantages based on the index of revealed comparative advantages developed by Balassa and on the Lafay index. During the next stage, the existence of comparative advantages in these categories of goods was checked by comparison with the other regions of Russia. According to the results of the research a range of recommendations can be developed to foster economic growth of the Sverdlovsk region. JEL Classification Numbers: F10, F14, O10, DOI: https://doi.org/10.12955/peb.v1.20
The degree of income differentiation depends on many factors, including the level of regional economic development, production structure and industrial specialization. In this paper, we assess the impact of the industrial specialization... more
The degree of income differentiation depends on many factors, including the level of regional economic development, production structure and industrial specialization. In this paper, we assess the impact of the industrial specialization of Russian regions on income inequality measured by the Gini coefficient. Based on the regional data over the period 2005 to 2018, we build an econometric model applying the Arellano-Bover / Blundell-Bond estimation method. We use shares of the main industries in gross regional product to describe production structure of regions. The modelling results show that the classic Kuznets curve is not empirically supported for the regions of Russia. Besides, we find that the larger the share of mining, manufacturing, construction, trade and financial sector in GRP, the higher the inequality in the region, while the share of agriculture does not affect it significantly.
This paper empirically analyzes the effect of spatial concentration of economic activities on enterprise productivity, using Russian firm-level data. Panel data allows us to control for endogeneity biases associated with estimation of... more
This paper empirically analyzes the effect of spatial concentration of economic activities on enterprise productivity, using Russian firm-level data. Panel data allows us to control for endogeneity biases associated with estimation of agglomeration economies, using fixed effects method. Our results show that Russian firms benefit from the share of similar enterprises in the total city revenue and urbanization, also that these advantages differ by city type. We also find a lack of connection between the level of wages and the revenues of firms for cities within agglomerations (while for other types of cities this effect is significant and positive). We assume that this is primarily due to the role of the agglomeration center, which determines the level of wages in all cities of the agglomeration. The results show that for the optimal development of territories it is necessary to pursue a diversified regional policy.
Les donnees sur les firmes, les villes et les regions russes des annees 1999-2008 sont utilisees pour analyser l’impact de l’agglomeration et du potentiel de marche (PM) sur la productivite des firmes et leur choix de localisation. Le... more
Les donnees sur les firmes, les villes et les regions russes des annees 1999-2008 sont utilisees pour analyser l’impact de l’agglomeration et du potentiel de marche (PM) sur la productivite des firmes et leur choix de localisation. Le salaire, l’infrastructure de transport et le climat economique sont pris en compte. La motivation est de trouver les sources de developpement des villes, dont les conditions initiales et la situation actuelle sont considerablement differentes. Les economies d’agglomeration sont basees sur le partage, l’adequation et l’apprentissage. Le Chapitre 3 montre que les economies d’urbanisation et de diversite ainsi que l’effet de PM sont positifs. Les economies de localisation ont la forme de U inverse dans la plupart des cas, mais elles sont positives pour les monovilles ; les economies d’urbanisation sont aussi importantes pour celles-ci. Le Chapitre 4 montre que les economies d’urbanisation resultant de la presence des firmes nationales et etrangeres sont p...
We investigate the impact of R&D spending on firm productivity through innovation and human capital channels. To this end, we apply the structural CDM model to analyse a comprehensive Russian-firm level data obtained from the Business... more
We investigate the impact of R&D spending on firm productivity through innovation and human capital channels. To this end, we apply the structural CDM model to analyse a comprehensive Russian-firm level data obtained from the Business Environment and Enterprise Performance Survey supplemented with the Regional Integral Index of Innovation Development. We consider internal and external human capital as well as different levels of firms’ technological intensity. Our first stage of analysis demonstrates that dissatisfaction with employees’ specialisation, import of intermediate products, and firm’s association with larger enterprise augment total R&D expenditures. The second stage of analysis reveals that R&D expenditures, cooperation with universities, personnel training, and regional innovations spur the firm’s innovative sales. Finally, the last stage of our analysis affirms our proposition that innovative sales, capital and labour costs per employee accelerate productivity. Our est...
Innovations are among the most important drivers of firms’ productivity improvement.  Newly introduced products and processes, as well as organizational and marketing practices, are important for firms’ performance and for countries’... more
Innovations are among the most important drivers of firms’ productivity improvement.  Newly introduced products and processes, as well as organizational and marketing practices, are important for firms’ performance and for countries’ prosperity. In this paper, we analyze how management processes influence firms’ innovation and performance based on Russian data. Our main research question is how the quality of management affects innovative results and thereby, productivity. We employ a survey of enterprise activities, and business climate BEEPS covering the period 2012-2014 and including 1564 firms. Based on the existing literature, we create a framework to study the impact of various factors on firms‘ innovation and productivity. We study both internal factors such as a firm’s quality of management and external factors such as innovation climate in the region and availability of private and public financing. A model applied in our research is a well-known CDM model containing three ...
Research background: Intensive economic growth in Russian regions during recent decades has been associated with numerous environmental issues, particularly increasing CO2 emissions, as well as income inequality. To achieve sustainable... more
Research background: Intensive economic growth in Russian regions during recent decades has been associated with numerous environmental issues, particularly increasing CO2 emissions, as well as income inequality. To achieve sustainable development, it is necessary to resolve these issues. Purpose of the article: To shed light on the impact of income inequality on CO2 emissions based on Russian regional data covering the years 2004?2018. Methods: Gini index and decile dispersion ratio are used to measure income inequality. To study the impact of income inequality on CO2 emissions in the Russian regions, we estimate econometric models with fixed and random effects and apply GMM method. We test the hypothesis of the environmental Kuznets curve to determine the impact of economic growth on CO2 emissions. Findings & value added: The results show that CO2 emissions increase in tandem with growth in income inequality between 10% of people with the lowest income and 10% of people with the h...