AGGLOMERATION ECONOMICS AND ASYMMETRIC INFORMATION: ROLE OF INSTITUTIONS

Vinko MUŠTRA[1]

Associate professor, Faculty of Economics, Business and Tourism, University of Split

vmustra@efst.hr

Hrvoje KALINIĆ

Assistant professor, Faculty of Science, University of Split

hrvoje.kalinic@pmfst.hr

Abstract

This paper constructs the model that links agglomeration economics with information asymmetries. It extends the literature by launching the concept that explains influence of the asymmetric information on agglomeration economies by emphasizing the role of the transaction cost under institutional framework. Consequently, the predictions of the model suggesting that impact of agglomeration economies depends on stages of development highlight the importance of different approach to the agglomeration economies phenomena in developing  and developed countries.

Keywords: agglomeration economics, asymmetric information, transaction costs, institutions

JEL classification: R1, O4, D8

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[1] Corresponding author

ASSESSMENT OF INNOVATIVE POTENTIAL AS A CRITERION FOR EVOLUTION OF THE MESOECONOMIC SYSTEM

Olga MYZROVA

D.Sc. in Economics, Professor; Department of Economic Security and Innovation Development, Yuri Gagarin State Technical University of Saratov, Saratov, Russia

myzrova.stus@bk.ru

Larisa SERDYUKOVA

D.Sc. in Economics, Professor; Department of Economic Security and Innovation Development, Yuri Gagarin State Technical University of Saratov, Saratov, Russia

serdyukova.stus@ro.ru

Elena LABAZNOVA

Ph.D. in Economics, Associate Professor; Director of Institute of Social and Production Management, Yuri Gagarin State Technical University of Saratov, Saratov, Russia

labaznova.stus@ro.ru

Abstract

Under current conditions of economic development a constant and timely research into the ongoing internal and external changes, affecting the accumulation of innovative potential, as well as degree of its utilization, will speed up the processes connected with upgrading competitive advantages and economic growth rate. The aim of the work is offer methodological tools employed to estimate the innovative potential of the mesoeconomic system as a criterion which ensures development in a given direction. The results of research proved that the ability and determination to develop innovative activity is determined by the accumulated aggregate potential of the mesoeconomic system as a whole, which can be estimated across the sections including infrastructure and legal regulations, innovation and production, education and research, as well as finance and investment. The results of research were tested based on the analysis of innovation potential of Saratov region as a mesoeconomic system.

Keywords: Innovation potential, infrastructure and law, production and innovation, scientific and educational, investment and finance

JEL classification: O10, O52

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HOW CITIES IN INDIA CAN ATTRACT MORE RURAL POPULATION?

Sabyasachi TRIPATHI

Institute for Statistical Studies and Economics of Knowledge. National Research University Higher School of Economics, 11 Myasnitskaya St., 101000, Moscow, Russia

sabya.tripathi@gmail.com

Abstract

The low level of rural to urban migration needs to boost up for a higher rate of urbanization and economic development in India.  In this paper, we use cross-section data models to investigate the relevant determinants of rural to urban migration at the city level in India in 2001. City-level analyses show that employment opportunities and availability of infrastructure facilities pull people from rural areas to urban areas; however, a higher level of living cost, poverty, and inequality discourage migration. India’s abundant rural resources such as land and labor need to reallocate to the urban areas to increase productivity and economic growth. In this context, we suggest that management of poverty, inequality, job creation, provision of better infrastructural facilities are essential at the city level to promoting rural to urban migration in India.

Keywords: Urbanization, rural to urban migration, urban economic growth, India

JEL classification: R12, O10, O15

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