Diversification versus concentration trends in the housing construction and stock across Siberian regions

Gheorghe Săvoiu, Alexander Vilgelm

Abstract


Relevance. The processes of regionalization and localization are currently intensifying in the Siberian macro-region, where local markets act as drivers of socio-economic development. We associate their development with the diversification of the sectoral structure. Nevertheless, the demographic conditions contribute to the growth of spatial concentration, which affects the sustainability of the housing construction structure and negatively affects the housing market.

Research objective. This study aims to analyze the economic consequences of the diversification-related processes and the degree of the spatial concentration of these effects in Siberian regions.

Data and methods. The study relies on official databases for the calculation of the Herfindahl-Hirschmann and Gini-Struck coefficients. Econometric analysis was conducted with the help of E-Views software.

Results. The concentration phenomenon in housing construction becomes indirectly dependent on regional diversification of the urban and rural housing stock, with an intense and natural correlation for the urban housing stock, which is stronger than in the case of the rural housing stock. The multifactorial model of concentration in housing construction indirectly depends on the combined regional diversification of incomes and population and the urban or rural stock.

Conclusions. The evolution of the Siberian macro-region is shaped by the increasing urbanization and localization processes, which exacerbate the insufficient level of diversification. These factors are detrimental to the development of the local markets of resources; they have a negative effect on the rate of housing construction and on the supply in the housing market. 


Keywords


Diversification (D), Concentration (C), D vs. C Coefficients, Correlation Matrix, Econometric Model, Regional Economics, Local Markets

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References


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DOI: https://doi.org/10.15826/recon.2022.8.2.013

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