Diversification versus concentration analysis in specific economic activities for assessing spatial differentiation within local markets

¹ University of Pitesti, Faculty of Economic Sciences and Law, Accounting, Finance and Economics Department, 1st, Targul din Vale, Street, Pitesti, 110040, Romania
² Khakas State University N.F. Katanova, 90 Lenin str., Abakan, 655017, Russian Federation

^* Corresponding author: asvilhelm@gmail.com

Abstract

Diversification and concentration represent essential two opposite trends in many economic phenomena. Monopoly and monopsony are the natural limits in any market's analysis and describe together the range or the amplitude of offer and demand in economics. A lot of statistical indicators or coefficients, quantifying the diversification versus concentration phenomenon (D vs. C), can reveal a market, optimal or not, full or empty, etc. The paper sheds the light on the relatively little explored concept of economic evolution from concentration to diversification across local markets, providing novel evidence on underlining the dominance of diversification process within regions. This paper has applied statistical structure variable-based methods for assessing spatial differentiation degree within housing construction economic activity in macroregion Siberia for the sample period from 2000:Q1 to 2020:Q4. We present empirical elasticities using the multivariate OLS model that summarize the diversification economic response to the increasing processes of urbanization and localization across the Siberian regions. Some final remarks offer a distinct profile of this Russian macroregion under the influence of demographical variability.