One-Industry Cities: Issues of Development

The research is devoted to problems of functioning of single-industry towns and the analysis of the possible solutions for maintaining their development. Company towns are a kind of indicators of development of the Russian economy. The functioning of one-industry towns is based on the theoretical model of monopsony, which shows interaction of one buyer (employer) and a plenty of sellers (employees) in an imperfect market (labour market). The study analyzed the nature of the existing problems of one-industry towns’ functioning and the previously applied methods of their solution in world and Russian practices. The paper used data of 899 Russian towns (200 one-industry towns) for seven years (2007-2013). Main economic indicators and some proxy indicators, that show other side of development of city-forming enterprises were analyzed in the paper. The results show ineffectiveness of held government support. The reasons for such outcome are various and doubtable. What is why the results can be used for further development of the machine evaluation of single-industry towns and for searching for the most suitable and appropriate state way of supporting them.