ARTICLE TITLE: Impact of Cultural Diversity of Russian Regions on Economic Performance
AUTHORS: Nesena M.
ABSTRACT: Is a culturally diversified community more successful than a homogenous one? It's one of the main questions in contemporary studies of cultural diversity impact on economic performance. Cultural diversity in modern Russian society is determined by the composition of the ethnic and cultural space, historically rooted, and now is driven by international and internal migration. The aim of this research is obtaining evaluations of cultural diversity of Russian regions, in particular its economic value. Empirical research was performed using a theoretical model developed by G. Ottoviano and G. Peri in which “diversity” has impact on productivity of firms and satisfaction of consumers through localized externalities. Regressions were evaluated taking into account the asymmetry of the Russian settlement system. The main of findings of the research is that in general inter-regional and international migration is not sustainable positive factor for productivity in Russia. Moreover, it was revealed adverse effects of internal and international migration on productivity in the Russian regions with high population density. In regions with smaller number of economically active population, cultural diversity generated by internal migration is a dominant consumption amenity but not dominant production amenity.
KEYWORDS: cultural diversity , migration , productivity , human capital , market potential , regional economics