Influence of City-Forming Enterprises on the Development of Single-Industry Cities

The purpose of the paper is to research influence of city-forming enterprise on monocity, on social-economic conditions. Data was collected from several relevant data bases: Spark.Interfax, Bloomberg, UN Comtrade and Federal Service of Statistics. Unbalanced panel is used as there are non-symmetric time periods for equations. Collected data was been worked due to measurement errors expectations and bias in estimation. I did not find any scientific study where authors make econometric study to research influence of local factory on social-economic stability in a city. That is why, economic innovation of the work is econometric modeling of relationship between city-forming company and social and economic stability. Problem of endogeneity was expected. In order to decrease it two steps least square is used with instrumental variables – international prices on final goods, dummies on region, type of industry and size of a city. For that aim fixed and random effect model were estimated. On the second step estimation influence of local factory performance on budget, average nominal wages and population.