A model of interregional migration under the presence of natural resources: theory and evidence from Russia
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Internal net-migration rates in Russia are negatively correlated with regional labour shares in mining. In order to explain this phenomenon theoretically and empirically, Crozet’s (J Econ Geogr 4:439–458, 2004) theoretical model is augmented by the mining of natural resources to allow for exogenous market developments and spatially bounded production. The model is directly transformed into an econometric panel specification and tested for 78 Russian regions for the observation period 2004–2010. The empirical results show that the mining of natural resources attracts internal migrants, while regional price-indexes have unexpected positive effects.
JEL ClassificationF12 R12 R23
The present study was conducted at the Vienna University of Economics and Business, the National Research University Higher School of Economics, Moscow, and WPZ Research Vienna. The authors would like to thank two anonymous reviewers of the paper’s present version as well as three anonymous reviewers of a previous version for their helpful comments.
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