Statistical evidence on Russian urbanization in the perspective of “modern” economic growth
Abstract and keywords
Abstract (English):
From an economic perspective, urbanization is considered as a transition of labor from agriculture to urban manufacturing sectors. The objective of the article is to describe the key processes of urbanization in Russia in the perspective of the theoretical paradigm of the “modern” economic growth regime coined by S. Kuznets and updated by O. Galor. The author bases on the results of studies of urbanization processes based on the evidence on Russia in the 19th-20th centuries, using reconstructed historical data and quantitative research methods. The author resorts to cross-country comparisons, by borrowing quantitative evidence from the data sets. In this perspective the author studies urbanization as an ultimate source of economic growth, since cities are considered as centers of production, trade and innovation, and provide agglomeration economic effects. Governments at various levels can promote urbanization by investing in infrastructure, as well as providing incentives for businesses to locate in cities. Thus, for Russia’s catching-up development, government incentives and direct participation in the construction of railways were important. At the early stage of “modern” growth an increase in wage differentiation was observed, due to widening of skill premium and increase in the share of those employed in the urban economy. Within-country spatial differentiation also tended to increase. However, during the most part of the 20th century both inequalities moderated. Thus, the author provides a state-of-the-art description and theoretical explanation of the processes of technological and institutional modernization of the economy towards its industrial development and the consequent change in its structure.

Keywords:
economic development, technology, institutions, railway transport, fiscal state, Kuznets curve
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References

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