Agglomerations: A Source of Growth in Times of Turbulence

16 Jun , 12:00–13:00
The Russian Economy: From Adaptation to Growth
Pavilion G, conference hall G7

Labour productivity increases with the size of the city. In urban agglomerations with more than 500,000 inhabitants, a 1% increase in population is associated with a 0.12% increase in average labour productivity. This can be attributed in part to the fact that more productive workers tend to reside in larger cities. But, larger cities also offer additional benefits known as “economies of agglomeration” to those who work there. The productivity of similar workers is approximately 0.02–0.05% higher in cities with a 1% increase in population. Consequently, based on studies conducted by the OECD, a comparable worker in a city of 6 million people is, on average, nearly 15% more productive than one in a city of 120,000. Furthermore, cities have a broader impact on economic performance beyond their immediate boundaries. Since 1995, regions located within a 90-minute commute of a major urban agglomeration have experienced approximately 0.4% points higher per capita GDP growth compared to countries lacking major urban agglomerations within a 300-minute drive. How do urban agglomerations contribute to regional and national economies? What are the prospects for the development of agglomerations in Russia? What measures are required to amplify the positive impacts of agglomeration development?

Andrey Sharonov, Chief Executive Officer, National ESG-Alliance

Dmitry Vakhrukov, Deputy Minister of Economic Development of the Russian Federation
Vladimir Efimov, Deputy Mayor of Moscow in the Government of Moscow for Economic Policy and Property and Land Relations
Pavel Malkov, Governor of the Ryazan Region
Pavel Smelov, Acting General Director, Center for Strategic Research Foundation
Alexey Texler, Governor of Chelyabinsk Region
Natalya Trunova, Auditor, Accounts Chamber of the Russian Federation